Right. This is one of my favorite examples of how badly bloated the web is, and how full of stupid decisions. Virtual scrolling means you're maintaining a window into content, not actually showing full content. Web browsers are perfectly fine showing tens of thousands of lines of text, or rows in a table, so if you need virtual scrolling for less, something already went badly wrong, and the product is likely to be a toy, not a tool (working definition: can it handle realistic amount of data people would use for productive work - i.e. 10k rows, not 10 rows).
Agreed - I've had this argument with people who've implemented virtual scroll on technical tools and now users can't Ctrl-F around, or get a real sense of where they are in the data. Want to count a particular string? Or eyeball as you scroll to get a feel for the shape of it?
More generally, it's one of the interesting things working in a non-big-tech company with non-public-facing software. So much of the received wisdom and culture in our field comes from places with incredible engineering talent but working at totally different scales with different constraints and requirements. Some of time the practices, tools, approaches advocated by big tech apply generally, and sometimes they do things a particular way because it's the least bad option given their constraints (which are not the same as our constraints).
There are good reasons why Amazon doesn't return a 10,000 row table when you search for a mobile phone case, but for [data ]scientists|analysts etc many of those reasons no longer apply, and the best UX might just be the massive table/grid of data.
Not sure what the answer is, other than keep talking to your users and watching them using your tools :)