I have a very similar problem, I have the Gentoo Linux guess and it's installed on the physical raw partition and this physical partition is connected to the Gentoo guess (not the physical raw drive but the partition).
Everything works well on VMWare Workstation 16.2, but after upgrading to the 17 version I can't boot, it shows me some error dialog about some invalid parameter in the configuration. 🐛
So I have tried to attach another physical partition into this Gentoo guess and I get the same error message. 🐛
I had to downgrade to 16.2 and thx god it didn't corrupt my partition or VM. 🙏
It's UEFI guess, not encrypted, no TPM, and the physical partition is connected using a SCSI controller. ℹ️
It looks like a general problem, I believe it will fail also for supported OS like ubuntu, so the question is how is possible that you don't have a unit test case for this and a problem like this can reach production builds.
I don't have a print screen or logs of this problem, but I have found practically the same dialog error on google, it looks very similar or the same as the following: