I had exactly the same problem. Do you have any update yet?

same issue

Already tried. No luck. Please let me know how it goes.

I can create an iso file but it's not bootable. Is your iso file bootable?

Oh yeah, it worked. Thanks mate.

I have the same error.

You can follow instructions given by taylorcurtis805. Then create a custom vm and load the iso file via CD/DVD.

Same issue with VMWare Fusion 12 and macOS Big Sur 11.0.1

https://github.com/rtrouton/create_macos_vm_install_dmg - this works.

Thanks Karthik.  That worked perfectly for me

create_macos_vm_install_dmg.sh (from https://github.com/rtrouton/create_macos_vm_install_dmg)  created two files:
+ macOS_1101_installer.dmg
+ macOS_1101_installer.iso

I used macOS_1101_installer.dmg with VMWare Fusion 12 Pro and I'm able to install macOS Big Sur (11.0.1)

Thank you all for the contributions made here! Friendly tip - be sure to exclude the host system creating the installer from any Big Sur software restriction in your MDM.

The scripts posted above led to a "Kill 9" error - which was Jamf in our case killing the installer process during the createinstallmedia function.

@taylorcurtis805 I was able to fix the force eject with adding -force to that line:

hdiutil detach /volumes/Install\ macOS\ Big\ Sur -force

This is still not working ...

Tried this as alternative to Paralells ...but too many problems (what a pitty).

I'm getting the same error in Fusion 13.0 and Ventura 13.2 via "Install macOS Ventura.app".

I use this https://github.com/rtrouton/create_macos_vm_install_dmg to create bootable img and then got it working.

That script works well - I've used it. Make sure you tell it to create an ISO, which you can then assign to the virtual CD/DVD drive and boot from it to install the VM. 

I took a look at what VMware did in the tool that they use to create "bootable macOS media from the Install macOS ... ,app." 

What I see makes me doubt once again how Mac-savvy their engineering staff is.

The script from GitHub.com takes a very straightforward approach that's the same as what @taylorcurtis posted - use the Apple-provided createinstallmedia application within the application's bundle and target the output to a disk image file instead of a physical device. They then use macOS hdiutil commands to create an ISO out of that DMG file. 

VMware tries to do something similar, but for some inexplicable reason (perhaps for backward compatibility or lack of effort to keep up with what Apple has done) tries to create a .vmdk file using their own code instead of Apple's utility.  That process is dependent on extracting and copying what they think should be the files contained in the contents of Apple's installer bundles. Apple appears to have made changes to the contents of the installer bundle that VMware's tool doesn't recognize. So, the process fails. 

Perhaps VMware ought to take a good hard look at what this script does and realize they need to seriously rework that tool and not just try to "patch" around it. This has obviously been broken ever since Big Sur was released (and I bet it is due to Apple changing things up to support Apple Silicon).