What I run is one hardened QEMU/KVM VM per project holding the whole dev environment (editors, agents, containers), with nftables on the host allowing internet egress but dropping anything aimed at the host, the LAN, or any other private address, plus an allowlist for deliberate exceptions.

Basically, it's a plain QEMU/KVM VM on a stock Debian cloud image: device model stripped down to a virtio disk, a virtio NIC and a serial console, nested virt off, no passwordless sudo in the guest. It also ships a containment check that scans outward from inside the guest, so the network boundary is something you can verify.

Wrapping the whole environment rather than a single agent session puts supply chain attacks inside the boundary too. A poisoned npm or PyPI package, or a compromised editor extension, lands in the VM instead of on the host. That was the original reason I set this up; agents just made it more urgent.

There's no per-domain egress allowlist; the policy is "internet yes, private addresses no". Secret injection isn't built in either, though Infisical's agent-vault on the host as an egress proxy covers that part.

Wrote the whole setup up here, in case it's useful:

https://karamatli.com/posts/network-isolated-kvm-sandbox-ai-...