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Yes, EVE can run Xen compatible virtual machines.

What type of workloads do EVE support?

VMs (running on top of Xen, KVM or ACRN)
Containers (running in micro VMs on top of Xen, KVM and ACRN)
Containers running on bare metal
A random combination of all three can run on the same piece of hardware.

We allow for easy packaging of VMs (and Unikernels — since those are just tiny VMs) inside of Containers and that’s where your confusion may stem from. More on that here:
https://github.com/lf-edge/edge-containers/blob/master/README.md

What is an "edge container"?

Edge containers are virtual machines with a manifest that describes the runtime environment including device resource and connectivity requirements.

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Any operating system which can run in a Xen compatible virtual machine should be able to run on top of EVE.  Linux, Windows, Mirage OS have all been successfully tested so far.

Can EVE run on VMs in a production environment?
We’re very happy with running EVE as a VM on top of GCP. GCP is currently the only public Cloud that support nested virtualization well (Azure is a 2nd one — but it requires a bit more work). Nested virtualization is required if you want to install EVE as a Virtual Machine. More details on GCP can be found here: https://github.com/lf-edge/eden#google-cloud-support

What other LF Edge project software does EVE interoperate with?

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Devices can be managed by any controller that implements EVE’s device API.  Currently the only compliant controller is Zededa’s Z Central service.  Project EVE is planning to build   We do have a simple dev & test controller soon.  Check it out here: https://github.com/lf-edge/adam. We welcome any other controlling services that want to implement the device API.