I haven't been all the way through this thread but found it when wondering why my VM was still on 21H2. That was a couple months ago but an item saying Microsoft had released an ISO of Windows 11 ARM got me looking again. After trying a few times with various suggestions, the following has worked for me:
1) Download the ISO from Microsoft - pick the US English version (I initially tried the International English version as I'm in the UK, but it would only work if I let it delete everything except my personal data).
2) Fire up the VM and change the language settings to US English.
3) Move the VM into the C:/ drive (I put it in the root). Mount it and click on setup.exe
4) Follow the on screen instructions as it proceeds.
5) When it finishes on its final reboot, change the language settings back.
6) Go to the update section and run any new updates.
That worked for me - a couple hours work. Oh, and step 0) Back up your VM before starting!
I suspect that might all have been covered already, in previous messages, but it's allowed me to note down my procedure before I forget
