My understanding is the Hypervisor framework didn’t easily support file system connectivity like fuse or different networking scenarios with virtio but perhaps the new, linked, APIs here in Big Sur now offer that? I presume Apple asked VMWare and Parallels why neither used the new Hypervisor framework and this was the resulting collaboration, but it might also have come about simply because Apple wanted to demo virtualization on ARM, of course...

I’ll admit though I ran it in Beta 2, I’m not aware of the details of which release had which API or which features VMware is using or not. It’s possible VMWare, having inside access to Apple docs, started working with private APIs that Apple has now made public? I really don’t know the details, I’d be happy if others chimed in, though. :)