Below is the fix for this Windows 11 issue:
“LOADING VIRTUAL MACHINE” ERROR RESOLUTION”
In late September 2022, Microsoft introduced Update 22H2, which contained a change to how RDP (Remote Desktop Protocol) operated within Windows 11. This change caused most all of our users who loaded this update to experience the PC’s “sticking” at “Loading Virtual Machine," or hanging at the 1 second mark when the first screen with your email address pops up.
Many “solutions” were put out on the internet including “turning off UDP through the Registry." For those users that used the “turning off UDP thru the Registry”, you will have to delete the entry you made in the Registry and then restart your PC, then install this KB patch. All other “solutions” just need to install this KB patch.
Below it a link to the Microsoft Catalog:
And this is the specific Update Preview you will want to download:
2023-01 Cumulative Update Preview for Windows 11 Version 22H2 for x64- based Systems (KB5022360)
After you download your update, go to File Explorer and to your Downloads folder. You will see an entry that looks like the illustration below:
Place your cursor on this entry and then right click on it. Then click on “Open." It will then look like the window below and begin to download:
This update is large (276MB) so it will take so time. Once downloaded, it will install, and the window will look like the one below.
Once completed, the update is installed, it will ask you to restart your PC.
If you have any questions or trouble with the download, we would be happy to help. Please contact Support at email@example.com or call (612) 999-4072.