This is probably not caused by virtualization. The mentioned screen resolution implies a 4K display.
On 4K displays the text size is usually way too small and the font size has to be scaled up to become readable.
So I recommend to check the font scaling in the W11 VM, I think 125% or 150% should be fine, higher values may cause this issue.
But this also depends on the display size, on smaller 4K displays (<20") 150% might be still too small.
In virtualization it might also be possible to set the screen size of the VM to something like 1K (1920x1080) and the font scale to 100%. Then let the hypervisor scale the VM window up when it is resized on the 4K display.
Armin
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