Here is how you can turn a macOS installer into an ISO file. This is a required step if you want to run this in a virtual machine. Hope this video helps!
Terminal commands:
Creates Empty Disk: hdiutil create -o /tmp/Monterey -size 16384m -volname Monterey -layout SPUD -fs HFS+J
Mounts created disk: hdiutil attach /tmp/Monterey.dmg -noverify -mountpoint /Volumes/Monterey
Creates install media: sudo /Applications/Install\ macOS\ Monterey.app/Contents/Resources/createinstallmedia --volume /Volumes/Monterey --nointeraction
Unmounts disk image: hdiutil eject -force /Volumes/Install\ macOS\ Monterey
Creates CDR file: hdiutil convert /tmp/Monterey.dmg -format UDTO -o ~/Desktop/Monterey
Converts CDR to ISO: mv -v ~/Desktop/Monterey.cdr ~/Desktop/Monterey.iso
Cleans up files: rm -fv /tmp/Monterey.dmg