No

> or are you saying you sort of roll your own DfM alternative?

Yes, I set up a NixOS VM and use DOCKER_HOST=ssh://docker@<ip>

If you want to have it easy you can roll with lima/colima (but I found the fs sharing slower than vmhgfs)

> Also, what does "VM isolation" mean here?

The host/guest boundary. The guest is just like any another, remote machine. DsM adds smoke and mirrors to make it look like guest and host are one.

> How is NFS or VMware Fusion more "isolated" than DfM?

It's not, both are VMs and need a way to expose the host fs to the guest, NFS or vmhgfs are a means to that.