The Launcher is unable to recognize JDK version 1.18.0.1.1 as a valid JDK installation.
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The issue is persisent in the updated launcher. I did try the older version of the launcher and that one is incompatible with Java 18. I did try to reinstall the JDK version, and did manually search for the javaw.exe in the edit window. The launcher works with the latest version of JDK 17 but not 18. So it is a JDK 18 only bug as of the new launcher version.
Hi again!
Can you please check does this issue occurs on the beta version of the Launcher?
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The issue still remains in the beta version of the launcher.

Thank you for your report!
We're tracking this issue in MCL-18306, so this ticket is being resolved and linked as a duplicate.
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Hi there!
Could you answer few questions regarding this issue, it will help with the investigation?
Does this issue occur on the new version of the Launcher? If yes, have you tried older version (Windows 7/8 from the minecraft.net website)?
Have you tried downgrading JDK version?
Have you tried reinstalling JDK version?
Have you tried searching for Java JDK manually in installation edit window?
This ticket will automatically reopen when you reply.