Understood. Attempting to install docker desktop was done merely as a troubleshooting measure. That VM has been abandoned.
Just spun another fresh 2022 core up and followed the instructions on the https://learn.microsoft.com/en-us/virtualization/windowscontainers/quick-start/set-up-environment?tabs=dockerce for getting containers on server 2022. One fact that is NOT mentioned in the page is that you should probably actually go to the console and run the powershell script given- Don't try to just run it via the 'powershell' prompt in WAC. When doing this, I got the .err file which indicates that the powershell script did not run properly. Again this is straight out of the box 2022.
Also, after rebooting, it is NOT complete unless you rdp / log in again as the user you initiated the install with.
Of note is that i'm using vcenter 7.0.3 and made sure that virtualization security was enabled on these VM's.