No luck. Upon starting VM:
These are added as SCSI disks. The boot disk is M.2 drive. I think it needs to be added to the VM as an M.2 drive, but guess HyperV doesn't support that yet...
M.2 literally has zero to do with it.
It doesn't matter if you use disk2vhd on ide, scsi, iscsi, ssd, usb, m.2, nvme, lmnop, xyz, etc.
What matters is that you capture all needed volumes needed for boot, such as c volume, system, esi, whatever is needed for secure boot and uefi if that's used.
If you can't boot, verify you captured more than just the c drive, and also got the system volumes.
Then if you don't know, try the different combinations of gen1/2, secureboot.
Question... Did your desktop use uefi and secure boot or bios? I can tell you exactly what settings to use and capture on your original disk.