You are getting that message because there is no bootable operating system on that ISO.   You are trying to boot an amd64 (Intel) operating system ISO on an ARM architecture CPU and that will never work. 

You need to use arm64 / aarch64 versions of operating systems when running Fusion on an M1//M2 Mac. You really need to read the Unofficial Companion guide https://communities.vmware.com/t5/VMware-Fusion-Documents/The-Unofficial-Fusion-13-for-Apple-Silicon...

That document has extensive discussions on what Ubuntu versions work with Fusion on M1/M2 Macs. (Hint, Canonical does not release a Ubuntu Desktop 23.04 installer ISO for arm64 architectures. You should install Ubuntu Server 23.04 arm64 (not amd64) then “convert it” to Ubuntu Desktop using the procedures in the Companion guide.)