I only recently learned that Ventoy can also boot from Virtualbox VHD files and run them "on the metal".
Sample configs for grub2 ISO boot, e.g. USB or secondary disk partition for system recovery, https://news.ycombinator.com/item?id=38663958
There is dedicated hardware to emulate optical drives, e.g. Korean IODD sells SSD enclosures to emulate up to 4 virtual optical drives in parallel, mapped to ISOs or VHDs. As a standalone device, this keeps untrusted emulation code away from the system CPU. The output of that untrusted code could be verified, e.g. by hashing the emulated ISO.
[1] https://learn.microsoft.com/en-us/virtualization/community/t...