If the bios for you hypervisor is not presenting a TPM2 device to windows 11 then windows will not boot.
What hypervisor are you using? KVM/QEMU, or VirtualBox, or ?
When installing using virt manager (VMM) you have the option to tell it to use the bios with TPM which then should allow windows to boot.
This screen shows the option for customization which then allows for selecting the bios with TPM
Thanks to all. This is silly it seems the two iso images I tried were probably corrupted when copying to this new machine. I checked the sizes i bytes and it all checked out but during copying apparently some bit flipped or (SELinux) tagging was messed.
I downloaded a fresh copy (maybe it was a systemic Ryzen problem) and could boot from it to setup.