When using Vmware wizard in 13.5.1 to download Windows 11 ISO, and installing, you must use "safe mode' to turn OFF custom scaling, otherwise you get BSOD error (after install of VMWare Tools). anyone know why ? because based on the stop error, its seems to do with virtual hardware. Other than that, no other issues on M1.
Please go into the VM settings and in Display, uncheck "Accelerate 3D Graphics", and see if that resolves the issue.
Seems to have sorted itself out