VM not booting/installing from Windows 11 multi-edition ISO

LXD and libvirt enables different QEMU flags which might be why you are hitting that kernel/kvm issue.

Run FreeBSD 13.1 / OPNsense 22.7 / pfSense 2.7.0 (and newer?) under LXD VM contains some ideas on things to try. I’d start by trying the -cpu host trick first and see if that fares better.