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I really like LXQt for VMs. It is lightweight and fast enough to provide a very snappy environment, even beating out something like XFCE. With LXQt I get the minimally viable desktop environment with a panel, notification handler, etc.
Though most recently I have been using XFCE specifically because its notification widget gives me more info in the preview.
Same for me. I may have the ability to use GPU pass-through, but if I’m not willing to heat up my room, I use my VM with Lubuntu.