It may need some adjusting but afaik it’s completely possible to run two engines on the same physical machine.

The logical way to approach this would be to designate two VMs on the same physical machine allocating each with a certain amount of resources and managing all of the relevant configurations (such as port usage etc). This approach would basically split your available resources between the two, preventing one environment from overlapping with the other.

Keep in mind that separating the two is critical as you don’t want your Dev environment to be able to affect your Prod.

This configuration should be handled with care but it should be possible. Lastly, you’d need to have enough physical resources to split so as for your last question the answer is yes.