It is possible to install TopSolid'Pdm Server on a virtual machine.
However, the following conditions must be respected:

• The virtual machine characteristics must be in compliance with the hardware recommendations available on https://www.topsolid.com/en/services/requirements/topsolid-7
• When the physical machine hosts several virtual machines, at least 4 logical processors must be allocated to the TopSolid'Pdm Server virtual machine.

Regarding the license, some virtualization software like VMWare Workstation or VirtualBox support the management of USB ports, so it is possible to use a protection key.
If not, or if you don't want to use a USB key (which is often the case for a server), you can either generate a license from the virtual machine number (UUID) or use a floating license.