Hi Andrew, Charlie,
Yes, you can perfectly run a virtual desktop (doesn't matter on what platform it runs) and install VEB in it. As long as the OS of the virtual instance is windows 7 or higher, we are cool
I don't see any issues with BMR at all actually. I run a couple of VDI's and I just recreate a Virtual Desktop, attach the recovery appliance ISO to it, boot, and do a BMR. I do this for testing purposes almost on a daily basis. No problem here.
Is this what you are looking for?