OK fumbling through this process, which is definitely not designed for casual-coming-from-Parallels folks:

Since setup.ps1 seems to be a powershell scrips I tried 'powershell .\setup.ps1' and it gave me some kind of error.

I got it to work by starting powershell as an administrator with this command:

powershell Start-Process powershell -Verb runAs

Then it sill wouldn't work, so I had to change the "execution policy" with this command:

Set-ExecutionPolicy RemoteSigned

THEN I was able to run ".\setup.ps1" and it appears to have worked.  

Or maybe not... I was unable to continue the instructions on page 39 step 5.  But I was unable to do that.  There was no dialog asking me if I wanted to make changes to the device. I couldn't figure out what else to do, so I just clicked on through the Windows setup screen asking me what language I wanted.

Have I screwed myself, not getting a successful run though those dialogs about installing the VMWare Tools? Now that I have gone ahead and windows appears to have installed, Under the Virtual Machine menu it says "Cancel VMWare Tools installation", greyed out...  I restarted the VM and it still has that greyed out.

Update:  I found this thread: https://communities.vmware.com/t5/Fusion-2023-Tech-Preview/option-to-install-VMWare-tools-is-unavail...

In there it says to open up an Explorer window and right-click the setup file and Run as Administrator. I did that and saw the dialog about making changes to the device.  It did not show me the dialog shown on page 18 with the choices "Typical", "Complete" and "Custom".  Instead it threw up some windows that indicated the drivers were up to date.  So maybe my tools are installed ok?