Encountered while creating a VM on VirtualBox 6.1.28. A short description of the error shows “VERR_NEM_VM_CREATE_FAILED”. Further research shows from the log file an added line not present to previous VBox versions.

00:00:02.874001 NEM: HvPartitionPropertyProcessorVendor=0x1 (1)

To troubleshoot issue

Step 1. open CMD as admin

Step 2. Enter the command

bcdedit.exe /set hypervisorlaunchtype off

Step 3. Reboot

That should fix the issue and you will be able to create VMs as usual.