OK, I'm coming back here with an update. I installed Monterey 12.7.1 as a clean install in a VMWare Fusion Machine. and got the same installer failure message even after installer was granted permissions. So, this seems like an Apple thing, and nothing wrong with my main install of macOS. I like the Mist Application, it works well, so will more than likely just use that for installers now. Looks like it can also be used to create .iso files for a VM when the built in create media function doesn't work with Fusion.
Thanks guys for the feedback, and help. I feel much better now knowing my install is fine, and I won't have to start from scratch. I'm going to try the Sonoma InstallAsistant.pkg in the VM to see if it fails as well, for the public release of 14.1. That also failed in the VM. Here is what happens specifically when those particular Pkgs fail from Downloads, or Desktop., or any folder on the Desktop. The .app file gets created in /Applications as it should, but it's only about 42 MB vs the 11, or 12 GB of the pkg file. So I wonder if it's more than a permission problem since they partially install, but the resulting file is the wrong size. Again, thanks, I will use other methods to deal with Apple installers now and glad my system isn't broken.