This is intriguing! What was the market for this machine? The PC and mainframe seem so different in their likely users.
IBM still sells emulators, now software-based, for companies that do mainframe software development. And they are freakishly expensive.
That was deliberate and made a lot of sense. The functionality was split between two programs. The VM/370 part emulates the raw machine. CMS is the "operating system" on top of the VM "hardware".