This processor does not support XSAVE. This machine cannot be powered on

By enabling “Virtual Machine Platform”, you enabled the Hyper-V hypervisor. This is required for WSL 2, which is based on Hyper-V. It is not required for WSL 1. So maybe just disable it if you don’t really need WSL 2.

When the Hyper-V hypervisor is running, VMware Workstation/Player cannot access the CPU’s virtualization features. Instead, they are forced to use Hyper-V. In the early days, this ways not possible, but it is now.

The error message you get, “The processor does not support XSAVE. This virtual machine cannot be power on.” means that your CPU does not meet the requirements for using VMware products on top of Hyper-V. From the VMware Workstation 15.5.5 Release Notes:

Windows 10 host VBS support: VMware Workstation 15.5.5 now runs on Windows hosts with Hyper-V features (For example: virtualization based security) enabled.

The followings are minimum requirement to run VMware Workstation on a Hyper-V enabled host:

CPU Requirements:

• Intel Sandy Bridge or a newer CPU
• AMD Bulldozer or a newer CPU

Supported Host Operating Systems:

• Windows 10 20H1 build 19041.264 or newer