In my experience it breaks with both VMWare tools and with Google Drive File Stream. I tried upgrading a physical machine from Catalina that had GDFS installed and I got into a reboot loop upon boot. After about 4 tries I got a message about a kernel panic keeping the system from starting and it said it disabled it. The system then did start but GDFS kept crashing as well as the Security & Privacy preferences window as reported here. After uninstalling GDFS I can open S&P Preferences.
On a fresh VM, after attempting VMWare tools install, I had the preference page crash. On another fresh VM, GDFS install induced the same behavior as the physical machine upgrade above.
I see the same issue reported on this site as a new Beta 7 bug: mrmacintosh.com/category/11-0-big-sur-beta/
Haven't tried Beta 8 but it's discouraging that it has been reported to not have fixed the bug.