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Windows Recall is secretly installed and enabled on non-Copilot+PCs (Privacy Nightmare)
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That's definitely possible but would make the host OS unusable while the VM is running afaik. Why not dual boot at that point?
I believe it was brought up after the previous Windows update fuckup, so that's as good a reason as any. Some people don't want to reserve a partition just for Windows but still need/want to be able to use certain programs that aren't yet usable on Linux.
VMs safely contain Windows so it can't do anything to the host, and if you're playing a game on a Windows VM, you're probably not worried about using the host anyway. I've considered it myself, but I've done dual boot, and it's not worth having the training wheels, imo.