Running Third Party Kernel Extensions on Virtualization Framework macOS Guest VMs

As of macOS 12 (Monterey), Apple's Virtualization framework has nice support for macOS guest virtual machines, but with severe limitations: For example you can't install a macOS guest on Intel Macs, install guests with newer versions of macOS than the host, copy and paste between the host and the guest, or install third party kernel extensions in the guest. As usual for Apple, the functionality they do support is nicely implemented, but they've left out so much that the result is only marginally useful -- at least compared to