Sorry, I meant "We pass nil as the TLS delegate parameter when calling createTCPConnectionThroughTunnel". Too many moving parts :)

If you start with a Sonoma VM and upgrade it to Sequoia, it should work correctly. Whether this will be fixed eventually or if we will have to start from Sonoma for every new macOS VM we want to create is anyone's guess :) I recommend you file a feedback report and ask that it be dup'd to the same issue, I think it's the best way to signal to Apple's engineers that it's an important issue.