I daily drove a Windows VM on Unraid for a solid 6 months. I did it because I'd wanted to try it out for a long time and after upgrading my server I finally had the resources to spare to try it out. Would I recommend it? Not for most people, especially if you intend to game on it. Most anything with fascistic anti-cheat will not run because it detects that it's in a VM, so it really limits your options. Performance-wise, the games that did run ran pretty well. FO76 ran between 80-120 FPS at 4K with most settings maxed. Similar with Destiny 2. I didn't do a lot of gaming during that time but those 2 titles were the most notable ones.

As for regular desktop use, most of the time I didn't even think about the fact that I was on a VM. There was a weird issue that affected only YouTube in Chrome where pages would load but most of the elements on the page would take 5-30 seconds to fully pop in. I tried it on several browsers and it had the same issue. That was really the only notable issue I had though.

In summary, I'm glad I did it because it was something that I really wanted to try because virtualization in general I just find super interesting. If it's something that similarly interests you a lot and you like tinkering, then go for it just to get it out of your system. I'm glad to be back on bare-metal for my daily driver PC though.

For reference, my Unraid server consisted of a 7950x (16-core), RTX 3090 (now relocated to my daily PC), and 64GB RAM. I allocated 6 cores (isolated from the host), 24GB RAM, and the 3090 passed through to the gaming VM. Also had a USB controller passed through. For storage I used a vdisk on an NVMe drive. Intended to pass through an NVMe drive but never got around to it.