Thanks, Paul. Using your method, I was able to successfully import my Parallels VM (Win 11 Arm) to VMware Fusion. The only differences are the current documented shortcomings of VMware Fusion 13.5, and the hard disk is named "harddisk.vmdk" (from Parallels) instead of "Virtual Disk.vmdk". A huge savings in time and patience compared to manually setting up a new VMware Fusion VM.
Update: I just went back now and changed all instances of "harddisk" to "Virtual Disk", not that it matters. Works fine.