MacOS Monterey host + Monterey guest = unusable performace

Hello all,
I have serious performance issues while trying to host a MacOS guest.
I tried maxing out CPU, memory and GPU specs for the guest for no avail -- it is so slow, it is practically unusable.
Windows guest works perfectly.
I have an i9 16" MBP 2019 with 16 GB RAM with 2GB GPU.
Anyone has any tips for running MacOS guests on a MacOS host?