I tried doing install from the recovery partition and that hung with no progress for 20 minutes so I did this:
Make a bootable installer from Apple's standard instructions - https://support.apple.com/en-in/HT201372
Create a custom VM for macOS 11 as Fusion does not know 12 yet.
Power on the VM. It won't do anything but that's not important right now.
Go to USB settings in the VM and check the box for and Connect to VM the Install macOS Monterey USB device.
Restart the VM and at least for me the USB installer booted and I was off and running.
I have not completed my first install yet but it looks like it will finish.
