There's not enough disk space available to start "Windows 11 Pro"

Hello, I have recently begun receiving this error and cannot start this Windows Virtual Machine on MacOS Sonoma Beta 2. I have 300GB free on a 1TB Mac Volume, and encounter no issues with a second Windows 11 Pro VM or other apps on the same Mac. The issue is confined to this particular VM which is configured as a 256GB hd and reached 70GB in size on the Mac. I tried running Disk Tools, but it hung, so I restarted the Mac and resized the VM to 512 GB; however, the disk space error is still recurring. Any guidance on steps to recover is appreciated.

Thanks!

 

FOLLOW-UP: This issue was corrected with MacOS Sonoma Beta 3.