What 'latest ARM version of Windows 11' do you have?.You'd be better off trying one of the Linux for arm64 distributions such as Fedora, Ubuntu, OpenSUSE, etc to prove to yourself that you can boot from CD/DVD based installers. VMware doesn't support a macOS guest yet because of the major 'proprietary' changes made by Apple for Apple Silicon (such as boot process, virtualization APIs). You won't be able to build a Monterey VM on an Apple Silicon device for 'testing purposes'. It's falling through to the PXE boot because of that. In either case whatever you are trying to boot isn't recognized as having a bootable operating system.
