My last PXE boot attempt got into the Kickstart stage and then failed due to the repo set up. The VM SCreen looked like this.
I made the following changes to /var/www/html/kickstart/kickstart.conf
# Use graphical install cmdline .... #repo --name="AppStream" --baseurl=file:///run/install/repo/AppStream repo --name="ISO" --baseurl=http://192.168.122.1/rhel8.1/AppStream
This let me skip the graphical install and also set up the repo to be the one from the mounted ISO. I restarted the VM and it seems to have worked. As of now, the install is progressing.