Yes, this is a somewhat known issue on normal Windows PCs too. Windows 11 22H2 or newer enables "Virtualization-based Security" (VBS) with "Hypervisor-Protected Code Integrity“ (HVCI) by default, if the BIOS is set accordingly. It protects against attacks which are mostly of theoretical nature, but also slows down the CPU somewhat, so i always turn it off like so:
Or disable the virtualization in the BIOS, for AMD it's AMD-V/SVM, for Intel it's VT-d.
The things it protects against are usually not something that a normal end-user would need protection against. The much bigger risks come via social engineering, well-made spam mails that lead to false clicks and entering of information, not doing updates of critical software and/or the OS, stuff like that (at least on a PC).
I saw a test on a Ryzen, enabling "Memory integrity" / HVCI costs around ~7% of performance, in certain games it can even be considerably more. Not only that, even the SSD performance goes down a bit. So i would never enable HVCI. The VBS feature (simple "Core Isolation" without Memory Integrity) is ok, but not HVCI with its performance decrease, knowing how unlikely an attack from that angle is.
By the way, these somewhat unnecessary features are perhaps the main reason for Win11's ridiculous requirements regarding CPU models. They marked a lot of older (but good) CPUs as officially incompatible, just because they don't support these features.