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I did it under Monterey with VMWare Fusion 13.5.1 and Sonoma. Works OK, and if you enable ParaVirtualization in the VM you will get 3D accelerated graphics in the VM.

EDIT: Ventural worked as well. Haven't tried Sequoia. The main benefit you'd have with this setup is not having to reboot between versions of the OS. If you do it with an SSD, you'll get better performance as usual, but with this iMac's Fusion drive, performance was still very usable. Another note is, even with ParaVritualzation enabled, some graphics related stuff don't run in a VM, as they don't work with OCLP either. So in both cases best to keep a supported OS around for those tasks.
Although iCloud Services only work with Sequoia, I guess ;-(
 
That sounds specific to M series Macs. My above statement still stands though, when I've run macOS in a VM (VMWare Fusion), I've been able to log into iCloud and other apple services without issues and have things function as they should. I haven't used Sequoia in a VM, so I am speaking from experience with Sonoma, and below with Monterey and below as the host (on an Intel based mac.)
 
Create a second Apfs container on the same ssd and install Sonoma there.
That is indeed pretty good practice if you have the space and as it happens is what I also have done for some time now.
So one can maintain, revisit and update each OS version as the OS and rootpatches become functional. Or not.
Use the one that works best at every given time. Two or more. When one becomes stable, you can delete the older ones as you go. FWIW, YMMV.
 
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