Doesn't this assume you bi-directionally share directories between the host or the VM? Or how would the AI inside the VM be able to write to your .git repository or Vagrantfile? That's not the default setup with VMs (AFAIK, you need to explicitly use "shared directories" or similar), nor should you do that if you're trying to use VM for containment of something.

I basically do something like "take snapshot -> run tiny vm -> let agent do what it does -> take snapshot -> look at diff" for each change, restarting if it doesn't give me what I wanted, or I misdirected it somehow. But there is no automatic sync of files, that'd defeat the entire point of putting it into a VM in the first place, wouldn't it?