After upgrading to Windows 11 24H2, my computer encountered this issue when using a third-party WireGuard client. After extensive searching, I finally found a solution. It's a mystery why Microsoft still hasn't addressed this issue.
Solution: Enable Windows feature Virtual Machine Platform (VMP) on Windows features.
Tutorial: Enable Virtualization on Windows
From: https://github.com/kubenetworks/kubevpn/issues/401 and https://answers.microsoft.com/en-us/windows/forum/all/windows-11-24h2-wireguard-connectivity-issues/7154bcea-fcce-4824-a226-bb5134a90c95