Depending on what OP actually wants to do it might be simpler to just install Linux normally in a VM. I recommend Hyper-v if you are using Windows Pro and if you are using Windows Home I recommend upgrading to Pro using MAS scripts or using a workaround to install Hyper-V on Home.
You could also use a hypervisor like virtualbox but they are type 2 hypervisors which are usually slower compared to type 1 like Hyper-v or KVM.
Yes, but how is it malicious to comply with the license? If the license doesn't require the code to be usable without a backend they have fully complied. Does the license even require usable code at all?
As long as they give the source code they are required to give I don't see any problem with it.