2. Download official SPICE Guest Tools directly:
  Invoke-WebRequest -Uri "https://www.spice-space.org/download/windows/spice-guest-tools/spice-guest-tools-latest.exe" -OutFile "$env:USERPROFILE\Downloads\spice-guest-tools.exe"
  
  3. Run the installer:
  Start-Process "$env:USERPROFILE\Downloads\spice-guest-tools.exe"

  4. Reboot the VM after installation.

note: choco install had problems. Hence, used direct install.