Fusion user here, but I have no problems either. Runs much better on the 16" than on my old 2016 15".
@donawaits advice is good, especially do not overcommit CPU resources.
I have also found that if a VM has been suspended for a while, Win10 can be very sluggish when the machine is resumed while Win10 "phones home" checks for updates and so forth. I tend to take a cup of coffee and wait until Win10 settles down before trying to do something. Check the "activity monitor" in your VM to see what may causing a slow down.