Developer Credentials not working in Virtual Machine

Hello,

I am running a virtual machine on my Apple Silicon Mac, using the sample Xcode project provided by Apple last year. I have Ventura 13.4 installed on on the host and the VM. I try to enter my Apple ID credentials in "Sign In with Apple ID" in the VM so I may then update this VM to Sonoma. I am sure I am getting my password correct. I cannot log in. Please see the screen shot.

Am I supposed to be able to do this? I can log into developer.apple.com within the VM OK.

Thank you.

FB12263051