You can't really do anything useful with a VM either unless you start punching holes in those boundaries.
Exactly.
If your VM can't do anything, it's probably not very useful.
Doing things meaning reading / writing files, communicating between VMs, services, etc.
I didn't say run in an air-gapped VM... Just as a means to better isolate the workloads I have running (some less trusted than others). Network connectivity and the associated vulnerabilities obviously remain.