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Same issue just happened after removing Hyper-V from Windows 11. System stopped responding CPU use went to 100% when using Host CPU. Going back to KVM64 for now.

I don't think the issue is in the guest OS level. It doesn't BSOD so there is no kernel level fault occurring, the system also does not respond to interrupts like ctrl-alt-del and the proxmox console only shows a black screen and does not respond to power state commands. I assume it is an issue...

Windows 11 was stable with wsl1 without Hyper-V installed. It started locking up with high CPU when I went to install an android emulator and then again when I added Hyper-V for wsl2. It would not boot at first. I changed the CPU from KVM64 to Host (AMD 3900x) - Did not resolve the issue...