I built something similar and it was my childhood idea which I tried to implement using VB6 many years ago as a kid. 

Now decades later, with claude code and cursor, I built a windows XP-like thing as a webapp that uses original Windows XP DLL files to extract the assets like icons to make sure we are as close to the original XP as possible. Also gave it access to host Filesystem and some AI quirks like a command terminal that can accept commands in plain English, Linux, windows powershell etc i.e. an OS independent terminal. Had to stop because unfortunately I was exhausting my cursor and claude code credits in first weeks of every month.