What build of Windows 11 ARM did you install?

This is a stupid question, I know... but... Did you type fn-F1 or fn-F8 (need the fn key on Apple keyboards)?

Have you tried booting the installation ISO and attempting a repair from there?

As you shut down the VM, did Windows install an update?

Just to double check: I'm assuming the VM is encrypted, the Trusted Platform Module device exists in your VM's Settings, and you have UEFI Secure Boot enabled?