I just posted in the ForniteCreative subreddit my issue, but I’ll also include a summarized version of my post here in hopes I’ll get an official response:
Apparently Fortnite doesn’t like virtual machines. When I use the “Launch Session” button in UEFN (to open Fortnite and test my map/game), after a short time of walking around my map FN kicks me and I receive the same error as in the above-linked reddit post. This is even though my VM instance is on Windows 11 (not a Windows Server sku).
I undertand Epic’s need to do this VM check to prevent cheating as it appears VM’s - and ones running on QEMU in particular - can be used (in ways that are above my pay grade) to cheat, and have no qualms about it. My only issue is all I’m trying to do is develop on UEFN for Creative 2.0! Why not have a setting that if you’re in “Create” mode then you don’t need BattlEye, and thus can use UEFN and Launch UEFN Edit Sessions without the BattlEye VM check?
For those interested - here’s the entirety of my reddit post as I do have a quirky workaround. 
Thanks!