I was able to reproduce this given your settings.
Your VM is mis-configured for use with Centos 9 Stream
From what I see, i'm surmising that when you created the virtual machine, you chose "Other Linux 6.x 64-bit Arm" as your guest OS type. That probably will work as a guest OS type, but it sets the memory for a newly created VM to 768 MB and a 8GB hard disk. Both are too small. Red Hat recommends a minimum of 1.5 GB of memory for RHEL 9, and I would go for that as an absolute minimum for Centos 9 Stream - and practically speaking I'd recommend more. The CentOS 9 Stream partitioner will complain if you have a disk smaller than 9.1 GB as well.
Just FYI - Centos 9 Stream ships with a Linux 5.x kernel, not a 6.x kernel.
The better choice for a Centos 9 Stream VM is a guest OS type of "Red Hat Enterprise Linux 9 64-bit Arm". That will set the VM's memory to 2 GB and the virtual hard drive to 20GB by default.
Here's how I'd fix your VM to run properly (I did this and it fixed the problems that were the same as yours):
- Shut down the VM
- Go into the VM's settings
- In the "General" panel, change the guest operating system type to "Red Hat Enterprise Linux 9 64-bit Arm".
- In the "Processors & Memory" panel increase the memory to 4 GB.
- In the "Hard Drive (NVMe)" panel, check the size of the virtual hard disk. If it is set to 8GB, increase it to 20 GB.
Then reboot the VM and restart the installer.