someone on reddit had this working 6 mo's ago, I think they had 2 VM's running games from one GPU it was on /r/vfio and they said the Windows Driver was being worked on as well.
this post was submitted on 30 Oct 2024
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I don't know about the 2 VMs part (although that should work) but they have a Youtube channel with a couple of videos, including Resident Evil Village.
I should note for even closer to native performance you want virtio-gpu with native context. Patches for that are currently being reviewed on the mailing list: https://patchew.org/QEMU/[email protected]/
There's also amdgpu native context support which allows native AMD GPU drivers in the guest (Linux only guests for now).
Haven't tested it myself yet though as I'm using a GPU passthrough setup. Although I believe both of these solutions will support multiple VMs using it at the same time, which is an improvement over regular passthrough.
personally I am not super interested In this, vulkan venus is going to be a lot more portable which is key for me.
For portability Vulkan is the way (it also gets you GPU compute for free without needing vendor libraries). That said the ruttabaga encapsulation is useful for things like Wayland over virtio-gpu which is useful for some use cases.