Hello, MithunVaranasi.
Welcome to Microsoft Community!
I understand that you want to run a VMware virtual machine on a Surface Laptop 7 (ARM64). However you have encountered an error while trying to run it.
We will note that the ARM64 architecture has many differences from past X64 architectures, and that the Microsoft community has limited information about VMware. We are collecting cases of application compatibility with the ARM architecture and we will log your incident here.
And to successfully run VM on Surface Laptop 7, you need to make sure that the application version of VM is compatible with ARM system architecture.
You can try to get in touch with VM's technical support to find out if they have released a version of the application for the ARM architecture. In the meantime, they may be able to provide more targeted advice on the issue.
I will share the following link with you:
Disclaimer: Microsoft provides no assurances and/or warranties, implied or otherwise, and is not responsible for the information you receive from the third-party linked sites, or any support related to technology.
Thank you for your understanding and support of the Microsoft community.
I also welcome you to share the information provided by VM Technical Support.
Best Regards.
Leo.L - Microsoft Community Support Specialist