"It's not broken" is the cry of the bad manager that hasn't done the proper analysis, hasn't actually looked at the pros and cons, but has simply become complacent and comfortable with the devil they know.
If they're still using physical floppies, then their process is broken now, so virtualising it will almost certainly un-break it.
A simple "clarifier" for this kind of thought process that I like to use is: If you were already using the new option (virtualised legacy hardware), would you think it a good idea to convert it to using open drives with convenient dust ingress, non-existent support and supply chain, glacially slow mechanical moving parts, and hilariously antiquated crunching noises for all data access? Would you? Really? Or would you recoil in horror at the very idea?
I use the same kind of logic on people who think staying on Windows Server 2012 in <current year> is a good idea. Would you downgrade Windows Server 2025 to 2012? Why not? You think it's a great platform, apparently!
PS: I worked on a large scale DOS-era software virtualisation project where we moved ~20K users onto a Windows + Citrix platform. We eliminated about 6000 floppy drives and about a million(!) tapes, and the resulting system was so much faster and reliable than the original that people were trying to bribe the project manager to be put at the front of the migration queue.