Or: Put all of Windows inside of a VM, within a host that uses disk encryption -- and let it run amok inside of its sandbox.

I did this myself for about 8 years, from 2016-2024. During that time my desktop system at home was running Linux with ZFS and libvirt, with Windows in a VM. That Windows VM was my usual day-to-day interface for the entire system. It was rocky at first, but things did get substantially better as time moved on. I'll do it again if I have a compelling reason to.