The "Bootable" legacy ISO you've used is in fact not bootable, it relies on CDROM emulation provided by BIOS. VMs don't usually do this sort of emulation. If you set the guest OS to something like ...
I have a Windows 7 virtual machine (VM). In native Win7, I am able to insert a USB drive, press F12 at bootup, choose to boot from the USB drive, and thus boot various tools relevant to the Win7 ...
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