Windows doesn’t “snitch” on you. Invasive anti-cheat measures demand to act as a root-kit on your pc that reads out literally everything about your system, including CPU, hardware ID of the mainboard, etc. So of course it will see that it’s installed on a VM and you gave it the right to send that info wherever during installation of the game.
Since the point of this measure is to keep people from evading a ban by reinstalling, it will not like seeing that it’s in a VM.