I don't run much on the root OS of my dev machine, basically everything is in a container or VM of some kind, but that's more so that I can reproduce my environment by copying a VMDK than in an effort to limit what the container can do to itself and data it has access to. Yeah, even with root access to a VM guest, an attacker they won't get my password manager, personal credit card, socials, etc. that I only use from the host OS... But they'll get everything that the container contains or has access to, which is often a lot of data!
Of course, this is not a real defense on its own, its just good practice to limit blast radius, much like not giving everybody admin rights.
That's a lot of work though, and increases the difference between your local dev environment and prod.
