Probably. I run all the old, insecure machines on their own subnet and physical segment, and some of the "keep them going" services are hosted on VMs running on our modern VM hosts. We've got a few things that have to cross the router/firewall between the two networks, not SMB currently though.
Based on documentation, ArcaNoae comes with support for large hard drives, newer video chips, USB etc etc.. I guess it should run on most hypervisor(s) or virtualization systems, provided you use a humble hardware configuration (e.g. no need to use GBs or RAM) even VirtualBox or KVM most likely will work. But whether it's supported by the hypervisor vendor or not is a different story.
Plain OS/2 did not receive any update for 20+ years, it's installer won't work on modern hardware/virtualization systems.
