I have been running PEP3 on Win11 ARM inside a VM (VMware Fusion) on my Apple Silicon Macbook Pro.
This has been working fine for the last few years.
A few weeks ago Microsoft apparently decided to remove .NET 3.5 from the OS, making it completely unavailable for installation and effectively breaking PEP3 since it won't launch anymore.
Supposedly an offline installation package for .NET 3.5 is still available for people who still require it, but it's well hidden and at least the one I found refused to be installed on the ARM version of Win11.
Of course, I forgot to snapshot the VM before the update and I had to build a new VM which will not receive any updates from now on.
Just as a heads up in case anyone uses a similar set up.
Sebastian