My apologies but I figured this out a couple of days later.
The issue is the hardware version. Although ESXi 7.0.3 Update 3 supports Windows 11, the hardware version only goes up to 7.0.3. Update 2. Update 2 is version 19. ESXi 8.0 and later is labeled version 20. The issue is on VMware's side, where they did not make a version 19.5 or something for 7.0.3 Update 3. If they had, you would get the selection. Luckily I am building a new ESXi 8 instances and will be migrating everything over to that instance. At the moment, I at least have a reason for why Windows 11 does not show up in the old environment as the hosted OS. I hope to move everything over before my users bombard me with questions.
Peace