Because VirtualXposed runs in a separate process with a different package name, many apps that normally refuse to run on rooted or Xposed devices (banking apps, some games, corporate MDM apps) will run normally inside the virtual space.
Because your actual operating system remains unmodified, your device will likely still pass Google’s SafetyNet checks. This means you can continue to use banking apps, Netflix, and Google Pay on your main system without errors, while running your mods in the virtual space.
This is the flagship feature. You do not need to unlock your bootloader or flash a custom recovery like TWRP. You simply install the APK, and you are ready to go. It is the safest way to experiment with mods.