What I mean is: on a normal laptop, when you scroll with two fingers on the scroll wheel, the distance you scroll is nearly a continuous function of how much you move your fingers; that is, if you only move your fingers a tiny bit, you will only scroll a few pixels or just one.

Most VM software (at least all of it that I've tried) doesn't properly emulate this. Instead, after you've moved your fingers some distance, it's translated to one discrete "tick" of a mouse scroll wheel, which causes the document to scroll a few lines.

The VM software I use is UTM, which is a frontend to QEMU or Apple Virtualization framework depending on which setting you pick when setting up the VM.