Hi Johnny,
I reinstalled from ISO 22533.1001, and checked the Optimize, see what it shows below.
Looks like the Optimize is available for the C: Volume, but clearly not available for the virtual CD, which should not even show up on that screen.
Look like it does not show the reserved partition, because this is a EFI virtual machine.
All partitions show up on Diskpart for the Virtual Machine Disk 0.
Let me know if you want me to check something else.
This version of player 16.2.1 seems to default to EFI, not sure if it is still possible to set up a legacy Bios VM to try out your case.
Edit:
Found out how to switch to legacy BIOS, I deleted the line on the .vmx file
firmware = "efi"



Here I ran Optimize on the VM C: Volume.

Trying Legacy Bios now:
