You don't need to do this on a cloud, you can get the same type of VM and network jail running on your own computer. The important parts are:
1. a VMM hypervisor
2. a network proxy / gateway
Use your favorite VMM / hypervisor (likbrun, smolvm, microsandbox, etc). They give you control over the network interface or let you inject your own network layer.The network proxy can handle all the ingress/egress rules, credential injection, etc.
It's still not user friendly to do all this. I think the next version of operating systems will have each "agentic process" be a bundle of VM, files in the VM, and network rules.
Been brainstorming[1] a lot of this because I've been building some open core tools[2] for spinning up sandboxed agents on arbitrary computers. There's a lot of glue and parts to stitch together to work smoothly. Don't think we've had the "Docker moment" for this, let alone the "Dropbox moment" that makes this stuff work for non-devs.
[1]: https://github.com/gofixpoint/amika/blob/main/ROADMAP.md
What percentage of HN users do you think can successfully set this up with no security flaws?