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Microsoft writes:
This build includes a change that aligns the enforcement of the Windows 11 system requirements on Virtual Machines (VMs) to be the same as it is for physical PCs. Previously created VMs running Insider Preview builds may not update to the latest preview builds. In Hyper-V, VMs need to be created as a Generation 2 VM.
Effectively this means Windows 11 will only run in VMWare Workstation Pro (which costs more than £200) or Hyper-V Manager that is included in Windows 10 Pro and Enterprise editions of Windows.
Microsoft confirms Windows 11 will not support most Virtual Machines - MSPoweruser