Sheesh, took VMware long enough to address the whole Windows 11 TPM issue.
In fairness, Microsoft created a whole problem because they promised to have Windows bypass the TPM check for VMs, and it worked for a bit, then they suddenly changed their minds and removed that logic. But there were posts in the VMware forums a year ago now promising to decouple disk encryption from the TPM feature (they were tied together because it was typically what people wanted, long before Windows 11).
@diegomagdaleno yep still doesn’t solve the problem for VirtualBox or QEMU which is really on Microsoft to address, but they went back on their policy to bypass the requirement for VMs, so I don’t think that’ll change