Even if I followed a different path (I upgraded an existing VM with Sonoma), I'm stuck on the same point as you are.
Usually, I wait a little bit as the first beta is not really stable.
I remember last year was the same, and the first betas didn't run when Apple Paravirtualization was enabled.
Having said that, I wouldn't be surprised if we won't be able to run Sequoia with Apple Paravirtualization enabled. As far as I know, Apple Paravirtualization was a sort of experiment that was never officially supported by VMware, and, as a result, there was no guarantee that it would run in future OS versions.
Add the fact that we're still running on Intel machines... that won't leave us with a lot of hopes.