I just installed Windows 11 - Dev Insider version, which is to my knowledge the only one available from Microsoft (or so they lead to believe). I didn't find it failing anywhere and it does have Internet. I have it as a VM with Player 16.1. It just runs very slow, but that is kind of to be expected. Win 10 version for the upgrade was H2, the latest it suggested to me.

You say that "Installer is stuck". When installing exactly WHAT something gets stuck? There are several possibilities as an answer to that question.

EDIT: As a further confirmation: Windows 11 Insider Dev Build (as mentioned above), works OK in VMware 16.1.0 build-17198959. Also VMware Tools install without problems. The extra slowness went away after a couple of boots and further Updates of Win 11 of today. I'm running it from a recent HDD (obviously SSD would be much better) and it works as expected. Host is Kubuntu 20.04.02 with recent updates.