Two options:
- You make an in-place upgrade. You simply download the iso, start Setup and select the Upgrade alternative. See image below.
- You create a new VM with SQL 2022 and move all the databases with BACKUP/RESTORE.
The advantage with the latter is that you can keep the old version as a reference if there is a performance regression, or there are some other issue. On the other hand, the first option is simpler, not the least given the number of databases. If you go for an in-place upgrade, make sure that you have a snapshot or similar of the VM that you can revert to, in case there is an unexpected error.
I'm assuming here that you have an OS that SQL 2022 supports. Windows Server 2019 should be OK. I am not sure about Windows Server 2016.