Even though our knowledge of physics is incomplete, a VM running a faster simulation of its container would be a paradox. You could stack successive layers of reality that would go faster and faster reaching eventually Infinite processing speed, allowing the computer from the root layer to perform an Infinite amount of computation in a finite time.

You may say that this could be possible as our understanding of physics is lacking. And that’s fine! But I think this paradox shows that the VM can only run slower than reality