Were you ever able to get this working?
I'm trying to install Kali 2022.4 on VmWare Fusion 13 (trial) on a M1 Mac and I'm getting the same issue. I'm not sure if its VMware, Kali, or the apple silicon.
You'll have better luck searching/posting in the Fusion forum rather than the Workstation forum, especially since you're on Apple Silicon. Search Technogeezer's unofficial guide to Apple Silicon in the Fusion documents forum.
Haha, I was just in the process of writing a post about it. Thanks!