Enable Virtualization-based Security on a Virtual Machine on Nested ESXi Server in VMware Workstation

First Step Shutdown ESXi Server enable Encryption

Second Add vTPM

Boot ESXi Server(s)

Configure Key Providers (Add Native Key Provider)

Now you can add vTPM to you VM
Don’t forget to enable VBS

Create GPO SRV 2022 – Virtualization Based Security and I did Apply only to my Server 2022 Lab Environment

System Information on my Server 2022 Lab Server