My understanding is that some modern game DRM does use an approach like that. See https://connorjaydunn.github.io/blog/posts/denuvo-analysis/

Denuvo's is a virtual machine similar to Java's virtual machine, in that it executes bytecode specifically written for it, within an application's process. I believe the parent post was referring to something closer to a Hyper-V virtual machine, an entire virtual computer.