I have similar issue and resolved by following steps:
1. Create a new vm with same configuration - let's call this "NEW".
2. During creating the NEW, at the "Choose Encryption" stage, save the generated password in somewhere else like notepad.
3. After the creation, go to "~/Virtual Machines.localized/NEW.vmwarevm"
4. Print the .vmx file and copy the value of encryption.keySafe and encryption.data
5. Go to the encrypted vm - let's say this as "OLD", so go to "~/Virtual Machines.localized/OLD.vmwarevm"
6. Open the .vmx file and replace the value of encryption.keySafe and encryption.data with the NEW's value.
7. Open the VMWare Fusion again and when run the OLD vm, you will encounter the popup for entering the password for encryption.
8. Paste the password you saved on step 3. and you can now access the encrypted vm.
I tested with Windows 11 Arm on VMWare Fusion 13 and VMWare Fusion 25H2.
Hopefully this would be helpful to someone like me who uses both Keychain Access and Password app on MacOS Sequoia and lost the saved password by somehow.
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