I'm wondering if it's the same issue I'm seeing - I am able use the keyboard and mouse, but I don't see it react on screen. To be more specific, if I type or click on something in the VM, it looks like nothing happened, but if I then if I drag the window to resize it, the effect shows up. If you have the VM still, could you try to verify by attempting to click once on the windows menu in the lower left, then when nothing appears to happen, drag the window size a bit to resize and see if it shows up? (Note that it seem like it has to be a drag resize - maximize doesn't seem to force the refresh).
Also, I've noticed a similar issue with the latest M1-build of Firefox - if I let it sit for a while, I can't see the interactions I'm having with it, but resizing the window forces a redraw. However, I haven't seen this in any other programs, so it could be a coincidence, it could be something with my machine, or it could be a something in common with how both those programs draw the screen.