But would it matter much for development? Either SSH into the VM and use vi/emacs or use an IDE/editor with remote support. VS Code even lets you use a container as a development environment (I know, not a VM by default):
> Using Remote-SSH opens a connection between your local machine and the remote. Only use Remote-SSH to connect to secure remote machines that you trust and that are owned by a party whom you trust. A compromised remote could use the VS Code Remote connection to execute code on your local machine.
https://marketplace.visualstudio.com/items?itemName=ms-vscod...
If you're worried about extensions there's also:
> When a user installs an extension, VS Code automatically installs it to the correct location based on its kind. If an extension can run as either kind, VS Code will attempt to choose the optimal one for the situation;
https://code.visualstudio.com/api/advanced-topics/remote-ext...