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I have figured it out.

Experimenting with a fresh install of Sequoia 15.6.1, reboots and shutdowns worked perfectly until I installed VirtualBuddy Guest App. After that, reboots and shutdowns hard locked the OS. Enabling/disabling Guest App in the VM config did not change behavior, however preventing Guest App from running at boot in the guest allowed normal reboots and shutdowns.

I don't know how to know if this is a Virtualization.framework bug or VirtualBuddy Guest App bug, but at least I have a path forward.

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@insidegui
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