Your concern about rampant malware won't even matter because the only way people can access the web services is through the VMs. The thin clients and physical workstations won't even be able to access most of those services that are mission critical.
In the situation where a company provided physical workstation is necessary, that machine would be just as isolated from the internal network as anyone else. Developers can use one of those, or use VMs that are VLAN'd off. And if your developers are automating their builds and containerizing, then your developers are going through layers of services and automation before their code goes out to production, so even they won't need access to production environments from their relatively insecure dev laptops.
They need access to a few webfrontends and be able to use their SCM server...
But in order to do that, they'll have to be able to test locally or have a really hardened access to their servers. Significantly harder than just forcing everyone on company hardware without root/admin access
That is extremely rare at larger b2b enterprises
We still restrict web access to company managed machines but it’s a layer, not an essential boundary.