I have a PC where I installed Proxmox on bare metal and put a daily-use desktop OS on top. It works surprisingly well, the trickiest part was making sure the desktop OS took control of video/audio/peripherals.
Yup my primary Windows machine is a VM and after passing through all the relevant peripherals (GPU, USB) it’s pretty seamless and you’d never know.
Cool part is I needed a more powerful Linux shell than my regular servers (NUCs, etc.) for a one off project, so I spun up a VM on it and instantly had more than enough compute.