No it is a VMWare issue. SR-IOV is completely irrelevant with this. SR-IOV is used to assign dedicated hardware to VMs and it's not even supported by Workstation/Player at all.

I experience the exact same problem with every possible client configuration on Win11 host with disabled HyperV entirely (logs clean). Without running a second VM at all. Just firing up workstation boot a Fedora image and select to install, results in immediate crash with VERIFY bora\vmx\main\hostWin32.c:569. Loading any existing Linux VM causes a crash randomly at 2 minutes max after boot. VMWare is completely unusable for quite a few months now due to this. Was hoping the 16.2.2 would fix it but it didn't. Tested 16.2.3 today issue still there.