I’ve been doing exactly that at home for a couple years now. First with Parsec, now Sunshine/Moonlight.
Host is Proxmox on Ryzen 5800x, 64gm RAM GPU is 2070 Super, with VGPU patched drivers from https://gitlab.com/polloloco/vgpu-proxmox
When I’m gaming I’ll dedicate the full 8Gb to my windows Vm, otherwise I split it in 2 or 4Gb chunks to Jellyfin or my home camera monitoring. 8gb can’t split very many ways, and most things require at least 2 to run.
Locally at home I can run 1440p 60fps rock solid over wifi on any device, from my phone/old laptop/apple tv/raspberry pi. Remote I can do 1080p60, but a bit more hit or miss depending on my network connection.
Experimenting with LLMs I’ve done through the same windows VM, or to a ubuntu dev VM. Works the same way. I’m thinking of transitioning my gaming VM to Linux too.
The amount of VRAM is the hard limitation to get past, the virtualization tech itself has been there for a while.
But to be perfectly honest……it really was just a “let’s see if I could do this” type task, direct GPU pass though is more straightforward and it’s not really worth splitting 8Gb these days. Unless you get a card with significantly more VRAM passthrough is much less work.