Interesting! Thanks for the report. Does it allow you to run it as sudo?
Your setup is definitely unorthodox. If I'm understanding correctly, you're running Debian 12 ARM64 on the RPi hardware, you're running a virtual machine image of Debian 12 x86_64 on top of it.
From what I can tell, it seems like the AppImage doesn't like that it's trying to run on the virtual memory of the VM. What VM software are you using?
You might try this command:
sudo QT_X11_NO_MITSHM=1 ./Digital_Character_Sheet_3-v1-Demo.AppImage