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@ALTO85 

You can not run any virtual machine on an M1/M2 Mac whose operating system requires an Intel processor. The M1/M2 processors are ARM CPUs and can't run operating systems that require Intel. And Fusion on Apple Silicon does not emulate an Intel processor. ( and even if it did, you would not be happy with the performance).

Parallels behaves the same way, so this isn't a VMware-only issue. Apple made the decision to move away from Intel, and this is one of the consequences.

Question 1:

No. Your existing PC has an Intel or AMD chip, so you can't do a physical to virtual transfer to a M1/M2 Mac and expect it to run.

You could build a new virtual machine that runs the ARM version of Windows 11, move any documents you have to the VM, and re-install all of your software. And test that it all works on Windows 11 ARM  (there are a few programs built for Intel Windows that will not work on Windows 11 ARM and that's on Microsoft, not VMware).  

Question 2:

None of your existing virtual machines built on an Intel Mac will run on an M1/M2 Mac. You need to run operating systems that run on ARM architecture CPUs. 

For Windows XP and 7, Microsoft does not provide a version that runs on ARM architecture. Windows 10 does have an ARM variant, but it is essentially obsolete and is not supported by VMware on M1/M2 Macs. You would have to run the ARM version of Windows 11 and then migrate all your data and applications.

For Linux, you would have to build a new virtual machine using Linux distributions that provide a variant for arm64 or aarch64. Fortunately, most distributions do have support for ARM processors. 

You might want to have a look at two documents in the VMware Fusion Documents section of this forum:

https://communities.vmware.com/t5/VMware-Fusion-Documents/Running-Fusion-on-an-Intel-Mac-and-upgradi...

and

https://communities.vmware.com/t5/VMware-Fusion-Documents/The-Unofficial-Fusion-13-for-Apple-Silicon...