And if not, is it possible to create such application?
P.S. I’m not sure whether to call it a Live(SD/SSD) installer as the “Live” part will be missing unless it’s USB.
If anyone wonders why you want to run to run a Live(SD/SSD) OS installer on a VM here’s my little story…
Story time
It was a dark and stormy night… so as usual, I was feeling up for playing some Dance Dance Revolution game which I had installed on my older computer. Now one of my friends asked “Why I would need such a large computer for it, why not use a raspberry Pi?" That way you could more easily bring it to friends whenever they want to play” and I thought “Great idea!“
Now for whatever reason, when I installed the raspberryPI OS on my SD card via a program called manjaro-arm-installer, the network didn’t work, but that was okay, because all I wanted to do was to run the DDR game locally. So all I had to do was install the debian packages and it would be A-OK!
But it turned out that the packages the game needed were all 32-bit and it had to be build from source, which would take a long time and I didn’t know what packages it wanted, so I just ran ./configure && make && make install and hoped for the best… which took hours and then it turned out make failed and that I needed an extra debian package, and again and again and a.. so I had this brilliant idea:
”Why not save a little of bit of time by installing the same OS on a second SD card with all the debian packages, plus some extra for both installing the game and some other setting that would hopefully make the network connection possibly work?”
So I went back and forth on swapping SD cards and then installing everything over again for the next one, and then swapping and installing, swapping and installing… and I did this 30 times and each time when I used the liveSD installer I had to press down and enter to select/dev/sdb or I’d be selecting /dev/sda when pressing enter immediately and well…
I think you guessed it already, after the 30th time I selected the wrong device.. uh oh!!
But, I was able to save it just in time. I’m not sure anymore what exactly happened, but it was along the lines of only having effected /boot, while the rest of my hard disk was still saved. So I started checking.. I think /mnt/boot to confirm my fears. And I would find the Raspberry Pi images on it. So I deleted those with cd /mnt/boot and then sudo rm -rf * and while I was at it with deleting those Raspberry Pi boot image files I thought “Why not wipe my mounted Raspberry SDcard fully before starting anew, so sudo rm -rf ../* and then get some coffee/tea”.
Yeah, let’s relax… mmm… good tea! Delicious!.. Wait, why is it taking so long to delete everything?..
…
……
……..
NOOOOOO..!!! 
And this would never have happened if Live(SD/SSD/USB) installers are run on VMs.
Now you could argue that manjaro-arm-installer should have done what most liveCD installers do and remove devices with giant disk sizes, but that’s still not 100% foolproof.
So that’s why I’m asking this question.