My xcodeproject file got corrupted in a way or the other as the entitlement file location was zeroed while the file was still there. Very sorry for the noise... Please delete the post if possible.

I derived a solution from https://github.com/insidegui/VirtualBuddy/blob/main/VirtualUI/Source/Session/Components/SwiftUIVMView.swift The solution is to create an NSViewController that controls the VZVIrtualMachineView and then wrap it with a Representable. It would be great to have the Apple Virtualization sample apps use SwiftUI 5.0, as now it is not just an alternative, but what shall be used to develop Apps. Providing XIB samples will just make the transition to best architecture (@Observable, flagged onAppear rather than viewDidLoad...)