That is ultimately a Microsoft question. Fusion in and of itself does not have anything to do with or can prevent the updating of virtual machine operating systems.
However, note that Microsoft does not deem systems that don’t have a TPM device or Secure Boot to be eligible to upgrade to Windows 11 If your VM does not have these devices Microsoft may not be able to upgrade your VM to Windows 11 without your intervention
Yes the Microsoft nagging is annoying but they don’t upgrade you to Windows 11 without you telling it to.
You should, though, be installing all Windows 10 updates to fix security issues. And be aware that Microsoft is ceasing updates to Windows 10 in October 2025. https://learn.microsoft.com/en-us/lifecycle/announcements/windows-10-22h2-end-of-support-update
- Paul (Technogeezer)
Editor of the Unofficial Fusion Companion Guides