Using CMF 2 pro. Installed Nothing OS v4.0, got Android 16. From developer options turned on the Linux shell and in the terminal app when I’m downloading and installing this is shown.

According to chatGPT
This error basically means your phone doesn’t support the type of Virtual Machine that Android 16 “Linux Terminal” needs.
What the message is saying
Non-protected VMs are not supported on this device
Android’s new Linux Terminal runs inside Android’s Virtualization Framework (AVF).
On many devices it requires Protected VM (pVM) support (hardware + kernel feature). If the device/ROM doesn’t support it properly, Linux Terminal crashes with this exact error.
So on your Nothing CMF Phone 2 Pro, it’s not your fault — it’s a device/ROM capability issue.
Please developers fix it.