Microsoft has pushed a new change to Windows 11 with Insider Preview Build 22000.194, available to machines on the Beta channel. The change requires that all Virtual Machines require TPM 2.0 to function at all, bringing them in line with physical Windows 11 installations.
https://www.notebookcheck.net/Windows-11-Insider-Preview-Build-22000-194-blocks-Virtual-Machines-that-lack-TPM-2-0.562358.0.html