I think there are some crucial steps missing in the solutions described here. I've spent this weekend trying to make it work and I've been able to create a script that will install SQL Express on Windows 11 in the Parallels VM. I've verified it works by connecting from the MS SQL Management Studio as well as from an ASP.NET Core application. You can find the script here:
https://github.com/jimm98y/MSSQLEXPRESS-M1-Install. Just run the bat file and wait until it completes.