I was able to disable the TPM check for a Windows 11 installation in VMware Fusion, but when trying to install some newer Windows Insider updates, I got an error when trying to install updates.
The error was:
The PC doesn’t currently meet Windows 11 system requirements.
The PC must support TPM 2.0
The fix was surprisingly easy. I just had to encrypt the VM in VMware Fusion, then add a new device: Trusted Platform Module.
Powered back on and the update was able to proceed.