For me its booting again with VMtools 11.3.5 (with 11.6 guests and 11.6 host) which is a manual download and install.  I see though that if I launch apps the guest black screens and other weird things happen from time to time so here's to hoping it works better in the next version of Fusion and Monterey?  Nice to see apps like Pages working in a guest though after all these years.