@dpdapper Warning: I don't know @#$% about Windows. I don't know how to update from an image. I've done two things.
First is to start with a Preview Windows 11 (ARM -- all of this is for Mac M1) VM. Then I went to Settings and searched for Reset and you will find "Reset this PC". Details can be found
here. As the post describes, I end up with a VM where the guest screen resolution appears to be very low -- so low that I can't read and interact with the prompts.
The second thing I've done is I went to
uupdump.net, picked "Windows 11 21H2" (second button), picked the second item from the top "Upgrade to Windows 11 (22000.376) arm64", pick "English" and hit next, then hit next again. You now have four check boxes, I checked the top three (based upon other threads in other sites) which are "Include updates (Windows converter only)", "Run component cleanup (Windows converter only)", and "Integrate .NET Framework 3.5 (Windows converter only)". Hit "Create Download Package" and it downloads a directory called "22000".
Now, inside a Windows VM (10 or 11), move that directory from the Downloads folder into the VM's local disk. I don't understand why but you can't make the ISO image while the directory is in the Downloads directory shared with the host Mac. Go into the directory, select the "uup_download_windows.cmd", right click, and execute it in the shell as Admin. I'm not sure you need to be Admin ... As I said, I don't now @#$% about Windows.
That will eventually create an ISO image. Move it back to the Downloads directory so its on the host Mac file system. I even moved it into my Parallels directory.
From the Parallel's Control Center, hit +, then Continue, then double click the "Install Windows or other OS ...". I select the image "manually" so I am sure I'm using the image I want and then build your new VM.
I've managed to go through this and activate the resulting Windows 11 VM. The "Edition" says "Windows 11 Pro" (no Preview), and the build is 22000.376 (today -- it will likely change upwards in the future).
Now... whether or not this is a real unmolested Windows 11 image I have no idea. It seems to work. I'd like to find a way that does not depend upon uupdump.net but all the Windows geeks seem to use it with wild abandon.
Oh... another thing that did NOT work is to go to the Microsoft Store from inside a guest VM Windows 11 or 10 Preview and try to buy a Windows 11 License. The store doesn't seem to have much in the way of base install images. MS appears to be trying hard to be "just like Apple" but is failing miserably. I have never understood why anyone puts up with MS.
Me??? I need a windows machine for about 6 hours a year to do my corporate taxes. A friend just pointed me to Amazon Workspaces. I'm going to check it out.
Good luck and let me know if you discover a better way...