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I guess you'd have to worry about malware breaking out of the VM as well, but are there many exploits that do that these days?

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That's hard to say, but both VirtualBox and VMware were hacked this year[1]. Definitely most secure would be both dedicated PC and running everything facing outside from VM. (and using SELinux or AppArmor as well).

[1]: https://securityaffairs.co/wordpress/82702/breaking-news/pwn...

What about a VM that is actually an emulator like Bochs?

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