There is a known problem when Hyper-V is enabled on the host with newer CPUs it results in crash if more than 1 vCPU is allocated. I think it was for 11th gen or newer Intel CPUs (not sure if it includes 10th gen as well) and certain AMD CPUs. This was fixed in version 16.2.x but not backported to version 15.5.x. So chances are Hyper-V is still enabled or components that rely on Hyper-V such as WSL2, Kernel DMA Protection, Defender Application Guard, VBS, etc are still enabled. At the vmware.log look for "Monitor Mode", ULM means Hyper-V is still enabled on the host.
Your options are
(1) completely remove Hyper-V and stick with version 15.5.x or
(2) or stick with Hyper-V enabled upgrade to version 17.5.x
Whichever option, if this is a new machine with 12th gen or newer Intel CPU, you will also face slow VM problems with only the E-cores being used.
See this post on how to remove Hyper-V, VBS
https://communities.vmware.com/t5/VMware-Workstation-Pro/Disabling-Hyper-V-hypervisor-on-Windows-11-Pro-host-to-get/m-p/2989411#M182968
For Kernel DMA protection, it has to be turned off the host UEFI.