Apparently there seems to be a conflict between the vmware nvme driver for x86 windows 10 machines and the update KB5022282. If the bug is on the Microsoft or the Vmware side - I don't know. Perhaps the Vmware developers can have a closer look at it.

The following workaround did it for me:

System configuration
Host:
Windows 10 Pro x64
Hyper-V + Windows-Hypervisor-Platform enabled
VMware Workstation 17 Pro
Guest:
Windows 10 Pro x86
Option: Side channel mitigation disabled
Settings:
- One NVME VHD installed as nvme0:0
- One SATA CD/DVD-Drive installed as sata0:1
- sata0:0 not used

Troubleshooting steps:
1. Shut down VMware Workstation
2. Backup VM
3. Edit vmx file:
- Disable nvme adapter
- Replace nvme0:0 with sata0:0
---
Initial configuration snippet:
sata0.present = "TRUE"
nvme0.present = "TRUE"
nvme0:0.fileName = "xxx.vmdk"
nvme0:0.present = "TRUE"
nvme0:0.redo = ""
---
New configuration snippet:
sata0.present = "TRUE"
nvme0.present = "FALSE"
sata0:0.fileName = "xxx.vmdk"
sata0:0.present = "TRUE"
sata0:0.redo = ""
---
4. Save vmx file
5. Start VMware Workstation: Instead of "Hard Disk (NVME)" you should see "Hard Disk (SATA)" now
6. Give it another try ...