To better understand why Setup is failing, you can check the log files in C:\Program Files\Microsoft SQL Server\160\Setup Bootstrap\Log. There is one log folder per installation attempt. The files of most interest is summary.txt and details.txt.
However, before we go there, does your machine have an ARM processor? In that case that could be the problem, as SQL Server does not support ARM. Whether VMware Fusion hides that fact for you, I don't know.
Here is a link that I collected at some occasion about installing SQL Server on a Mac: https://www.youtube.com/watch?v=9c7Ti2OcLZg You can also check out Randolph West's post here: https://learn.microsoft.com/en-us/answers/questions/1298316/sql-server-2022-database-engine-services-failde?comment=answer-1266245&page=2#answers