As the result, I got VM with 192.168.1.1 for LAN, while my router has the same address, and obviously I cannot reach hosts within my LAN from it. What should I do to set LAN interface for different IP address and point 192.168.1.1 as default router?
Welcome Chris.
If I understand correctly both your devices share the same IP and you can't modify the Host, but can access the Router. (If I have that backward sorry).
Use this time tested solution. SSH into the VM or Router and change the Interface IP to a different Subnet.
This is were the VM still is correct? I have a dumb question.. how do you know the VM is running if you can't query it and it's headless. I'm a newb here.
Perhaps.. changing the IF line hostfwd=tcp:127.0.0.1:1122-192.168.1.1 to "192.168.2.1" and retry the procedure now that the IP's are different and begin again.