For what it's worth, I just installed Monterey (macOS 12) Beta 5 as an update to Big Sur (macOS 11.4) in a VMware VM. I had no problems, and didn't need to change any settings (low level or otherwise).
Here are some details about my setup: I'm running VMware Fusion 12.1.2 on a macOS 10.15.7 (build 19H1323) host. I'm using Bridged Networking on Ethernet 1 (set explicitly). My VM uses 8192 MB of RAM and 4 processor cores. I installed VMWare Tools on macOS 11.4 before the upgrade.
