There was a bug a while back where you couldn’t start Debian based Linux distributions if you only had 1 core enabled in your VM, but I don’t think that is why you are having issues although you can try if you are indeed doing that. I think you are running into this issue here. Basically, HyperV troubles.
On Windows 10 and 11, virtualization from Windows (hyperv) and the use of other hpervisors were mutually exclusive. Either you disable hyperv in the settings and use other hypervisors like VirtualBox or you enable hyperv but then you won’t be able to use other hypervisors. At least it was like that in 2018-2019, I know since it was trouble for some former colleagues of mine. You should be able to test this out rather quickly.
It is my understanding that with Win11 Home, there is no Hyper-V, correct?
I think that I checked to make sure that Hyper-V wasn’t installed and/or enabled in the Windows features of Control Panel, and it didn’t look like that it was.
In googling the kernel panic issue – it appears that this is relatively common enough bug that a bug report was filed for it and it was supposed to have been fixed in mainline Linux kernel 6.15.
However, when I created a VM on an Intel NUC (so that I can patch the kernel and then re-package the VM as a VirtualBox OVA, so that I can unpack it and try to use it on my Asus TUF Gaming A17 laptop) – that didn’t work.
The mainline 6.15 Linux kernel was still having the kernel panic when I attempted to boot the VM.
So, I ended up returning said Asus TUF Gaming A17 laptop and switching to a Maingear Vector Pro 2 with an AMD Ryzen 9 6900HX instead as there was a higher probability that that was going to work.
(I have the even older/earlier version of that CPU – the Ryzen 9 5900HX, in my Mini PCs, and I have no problems running VMs via VirtualBox.)