Minecraft is launched but when the game starts it gives the following errors
Half of them are associated with C2ME

Game version 1 17 1
Mod version 0.2.0 + Alpha.5.3
Config

(Default: 1) Configures the parallelism of global executor

globalExecutorParallelism = 1

Configuration for async io system

[asyncIO]
# (Default: true) Whether to enable this feature
enabled = true

Configuration for threaded world generation

[threadedWorldGen]
# (Default: false) Whether to enable this feature
enabled = false
# (Default: true) Whether to allow feature generation (world decorations like trees, ores and etc.) run in parallel
# (may cause incompatibility with other mods)
allowThreadedFeatures = true
# (Default: false) Whether to allow reducing lock radius
# (may cause incompatibility with other mods)
reduceLockRadius = true
# (Default: false) Whether to enable global BiomeCache to accelerate worldgen
# This increases memory allocation
useGlobalBiomeCache = true

Configuration for vanilla worldgen optimizations

[vanillaWorldGenOptimizations]
# (Default: true) Whether to enable this feature
# (may cause incompatibility with other mods)
enabled = true
# (Default: true) Whether to enable End BiomeCache to accelerate The End worldgen
# This is included in lithium-fabric
# (may cause incompatibility with other mods)
# INCOMPATIBILITY: Set to false forcefully by: lithium
useEndBiomeCache = false

Configuration for general optimizations

[generalOptimizations]
# (Default: true) Whether to let async chunk request no longer block server thread
# (may cause incompatibility with other mods)
optimizeAsyncChunkRequest = true
# (Default: -1) Defines which chunk compression should be used
# -1 for Vanilla default (also prevents mixin modifying vanilla default
# from being applied)
# 1 for GZip (RFC1952) (Vanilla compatible)
# 2 for Zlib (RFC1950) (Vanilla default) (Vanilla compatible)
# 3 for Uncompressed (Fastest, but higher disk usage) (Vanilla compatible)
#
# Original chunk data will still readable after modifying this option
# as this option only affects newly stored chunks
# Other values can result in crashes when starting minecraft
# to prevent further damage
#
chunkStreamVersion = -1

Configuration for no-tick view distance

[noTickViewDistance]
# (Default: false) Weather to enable no-tick view distance
enabled = true
# (Default: 12) Minimum no-tick view distance value
viewDistance = 12
# (Default: 6) No-tick view distance updates per tick
# Lower this for a better latency and higher this for a faster loading
updatesPerTick = 6
# (Default: false) Whether to use compatibility mode to send chunks
# This may fix some mod compatibility issues
compatibilityMode = false

Configuration for clientside functions

[clientSide]

# Configuration for modifying clientside max view distance
[clientSide.modifyMaxVDConfig]
	# (Default: true) Weather to enable c2me clientside features
	enabled = true
	# (Default: 64) Max render distance allowed in game options
	maxViewDistance = 64

Error

java.lang.module.FindException: Module jdk.incubator.vector not found, required by C2ME.fabric.libs.main
at java.lang.module.Resolver.findFail(Unknown Source) ~[?:?]
at java.lang.module.Resolver.resolve(Unknown Source) ~[?:?]
at java.lang.module.Resolver.resolve(Unknown Source) ~[?:?]
at java.lang.module.Configuration.resolve(Unknown Source) ~[?:?]
at java.lang.module.Configuration.resolve(Unknown Source) ~[?:?]
at com.ishland.c2me.common.util.ModuleUtil.(ModuleUtil.java:48) [c2me-fabric-mc1.17.1-0.2.0+alpha.5.3-all.jar:?]
at com.ishland.c2me.mixin.C2MEMixinPlugin.onLoad(C2MEMixinPlugin.java:24) [c2me-fabric-mc1.17.1-0.2.0+alpha.5.3-all.jar:?]
at org.spongepowered.asm.mixin.transformer.PluginHandle.onLoad(PluginHandle.java:119) [sponge-mixin-0.9.4+mixin.0.8.2.jar:0.9.4+mixin.0.8.2]
at org.spongepowered.asm.mixin.transformer.MixinConfig.onSelect(MixinConfig.java:599) [sponge-mixin-0.9.4+mixin.0.8.2.jar:0.9.4+mixin.0.8.2]
at org.spongepowered.asm.mixin.transformer.MixinProcessor.selectConfigs(MixinProcessor.java:475) [sponge-mixin-0.9.4+mixin.0.8.2.jar:0.9.4+mixin.0.8.2]
at org.spongepowered.asm.mixin.transformer.MixinProcessor.select(MixinProcessor.java:437) [sponge-mixin-0.9.4+mixin.0.8.2.jar:0.9.4+mixin.0.8.2]
at org.spongepowered.asm.mixin.transformer.MixinProcessor.checkSelect(MixinProcessor.java:415) [sponge-mixin-0.9.4+mixin.0.8.2.jar:0.9.4+mixin.0.8.2]
at org.spongepowered.asm.mixin.transformer.MixinProcessor.applyMixins(MixinProcessor.java:285) [sponge-mixin-0.9.4+mixin.0.8.2.jar:0.9.4+mixin.0.8.2]
at org.spongepowered.asm.mixin.transformer.MixinTransformer.transformClass(MixinTransformer.java:208) [sponge-mixin-0.9.4+mixin.0.8.2.jar:0.9.4+mixin.0.8.2]
at org.spongepowered.asm.mixin.transformer.MixinTransformer.transformClassBytes(MixinTransformer.java:178) [sponge-mixin-0.9.4+mixin.0.8.2.jar:0.9.4+mixin.0.8.2]
at org.spongepowered.asm.mixin.transformer.FabricMixinTransformerProxy.transformClassBytes(FabricMixinTransformerProxy.java:23) [fabric-loader-0.11.7.jar:0.9.4+mixin.0.8.2]
at net.fabricmc.loader.launch.knot.KnotClassDelegate.getPostMixinClassByteArray(KnotClassDelegate.java:162) [fabric-loader-0.11.7.jar:?]
at net.fabricmc.loader.launch.knot.KnotClassLoader.loadClass(KnotClassLoader.java:154) [fabric-loader-0.11.7.jar:?]
at java.lang.ClassLoader.loadClass(Unknown Source) [?:?]
at java.lang.Class.forNameImpl(Native Method) [?:?]
at java.lang.Class.forName(Unknown Source) [?:?]
at net.fabricmc.loader.util.DefaultLanguageAdapter.create(DefaultLanguageAdapter.java:50) [fabric-loader-0.11.7.jar:?]
at net.fabricmc.loader.EntrypointStorage$NewEntry.lambda$getOrCreate$0(EntrypointStorage.java:106) [fabric-loader-0.11.7.jar:?]
at net.fabricmc.loader.EntrypointStorage$NewEntry$$Lambda$186/0x000000005bc72bb8.apply(Unknown Source) [fabric-loader-0.11.7.jar:?]
at java.util.HashMap.computeIfAbsent(Unknown Source) [?:?]
at net.fabricmc.loader.EntrypointStorage$NewEntry.getOrCreate(EntrypointStorage.java:104) [fabric-loader-0.11.7.jar:?]
at net.fabricmc.loader.EntrypointStorage.lambda$getEntrypointContainers$1(EntrypointStorage.java:191) [fabric-loader-0.11.7.jar:?]
at net.fabricmc.loader.EntrypointStorage$$Lambda$185/0x000000005bc72890.get(Unknown Source) [fabric-loader-0.11.7.jar:?]
at net.fabricmc.loader.entrypoint.EntrypointContainerImpl.getEntrypoint(EntrypointContainerImpl.java:37) [fabric-loader-0.11.7.jar:?]
at net.fabricmc.loader.entrypoint.minecraft.hooks.EntrypointUtils.invoke0(EntrypointUtils.java:47) [fabric-loader-0.11.7.jar:?]
at net.fabricmc.loader.entrypoint.minecraft.hooks.EntrypointUtils.invoke(EntrypointUtils.java:33) [fabric-loader-0.11.7.jar:?]
at net.fabricmc.loader.launch.knot.Knot.init(Knot.java:143) [fabric-loader-0.11.7.jar:?]
at net.fabricmc.loader.launch.knot.KnotClient.main(KnotClient.java:28) [fabric-loader-0.11.7.jar:?]
at jdk.internal.reflect.NativeMethodAccessorImpl.invoke0(Native Method) ~[?:?]
at jdk.internal.reflect.NativeMethodAccessorImpl.invoke(Unknown Source) ~[?:?]
at jdk.internal.reflect.DelegatingMethodAccessorImpl.invoke(Unknown Source) ~[?:?]
at java.lang.reflect.Method.invoke(Unknown Source) ~[?:?]
at org.multimc.onesix.OneSixLauncher.launchWithMainClass(OneSixLauncher.java:210) [NewLaunch.jar:?]
at org.multimc.onesix.OneSixLauncher.launch(OneSixLauncher.java:245) [NewLaunch.jar:?]
at org.multimc.EntryPoint.listen(EntryPoint.java:143) [NewLaunch.jar:?]
at org.multimc.EntryPoint.main(EntryPoint.java:34) [NewLaunch.jar:?]

C2ME for 21w37a should be ready for use now:
There is a new optimization and you can enable it by appending to the jvm flags

--add-modules jdk.incubator.vector

--add-modules jdk.incubator.vector

does the given argument work for 1.17.1?

It should work if you have java 16 set up, which you need anyway to play minecraft 1.17+, so add it to your launch flags and you should be good to go.

In release notes:

Optimizes perlin noise by vectorizing it using Java 16 Vector API (enable with jvm flag --add-modules jdk.incubator.vector)
Currently it will throw a warning when it cannot find the vector api module.
Note that the warning is only for troubleshooting issues when the optimization cannot be loaded properly and completely harmless to your server.