macOS is generally pretty amazing at efficient memory usage and VM handling. So even a 8GB machine can run pretty impressive workloads without having the user think the machine is underpowered.
I'm wondering if the Xcode simulator (without Xcode running) performs as well, my 2020 Intel MacBook Air has been incapable of running Safari in iOS smoothly for nearly all its life.
But... if you start applications inside your VM it will want the full 8 Gb you've allocated not the 5 Gb it uses at startup?
[1] https://developer.apple.com/documentation/virtualization/vzv...