Right, but that's not the same as running a Virtual Machine of a different operating system on a hypervisor. Rosetta2 lets me run a normal user-level Intel x86_64 program, but a VM hypervisor is something else, much more complex, and almost certainly has to be compiled for the M-series CPU.
I suppose I could ask VMware directly...
https://blogs.vmware.com/teamfusion/2021/09/fusion-for-m1-public-tech-preview-now-available.html