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Here's one option:

Create a new Windows 11 ARM VM using the instructions in the Unofficial Fusion 13 for Apple Silicon Companion Guide, found here: https://communities.vmware.com/t5/VMware-Fusion-Documents/The-Unofficial-Fusion-13-for-Apple-Silicon...

When you have the Windows 11 ARM VM working, shut it down.

Copy or restore the vmwarevm file containing your Windows 10 VM to your M1 Mac. You can't power it on, but you can access its virtual disks to copy the data from it. 

Add the virtual disk(s) of your old VM to the Windows 11 ARM VM. You do this by opening the Windows 11 VM's settings, and click on the Add Device button. A dialog asking "Choose a device to add:" will appear.  

Choose "Existing Hard Disk" and in the dialog that follows, navigate to the virtual disk from your Windows 10 VM. you wish to add to your new VM. (The virtual disk is located in the .vmwarevm file, which is in realty a type of folder that in this case Fusion will allow you to navigate into.).

When prompted, select to make a copy of the virtual disk. The Windows 10 virtual disk will be copied into a new virtual disk in your Windows 11 VM. Making a copy will keep your original VM intact.

Now when you boot Windows 11, you will see your old VM's virtual disk as another drive letter on your Windows 11 VM.  You may copy any files out of it that you need onto your Windows 11 VM's boot drive.