Cannot start more than 2 macOS VM instances (macOS 13.3, M1 Ultra 128GB)

I am not able to power on more than 2 macOS VM on my host Mac Studio with M1 Ultra and 128 GB RAM. I have only 32 GB RAM allocated to each VM. What is causing this issue and is there any workaround to run more VMs? Is this an apple enforced restriction? If so is there any documentation regarding this?

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govindvi
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The limit of 2 virtual Macs is part of the macOS End-User License Agreement.

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BenjaminApple
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