Yes, you can install any software designed for the OS on a UTM SE VM, though some softwares will probably run better than others, really resource intensive software probably won’t run as smoothly as medium to light software. And there is also a way to create a shared folder between the two. I have not used a shared folder yet. I installed a Windows 7 VM in UTM SE on my 11” M1 iPad Pro with 8GB RAM and 128GB storage. So far it’s been running great! Very minimal lag. It runs just as well as an old desktop I used to use ran it. I will tell you though, it is a bit of a learning curve if you haven’t created or used VMs before. I tried UTM’s Windows 7 template for a while, but I struggled to get it to work. So I decided to create a new machine from scratch. I stuck with the default CPU, turned off “UEFI boot” (this is under “QEMU” in the settings for the VM. I also found for the install that it helped to allocate less RAM (I believe the UTM app must be using more RAM in the background for this part of the process), so I gave it 2GB of RAM for going through the install. I also configured the default CPU with 4 cores, and switched on the “Force Multicore” setting. After I got Windows 7 installed, I ejected the installer ISO disc, I turned off the VM (use the software shut down within Windows 7, not the power button on the app UI), and went into settings for the VM and upped the RAM to 4GB of RAM. And this is the Windows 7 ISO I used:
https://archive.org/details/en_windows_7_ultimate_with_sp1_x64_dvd_u_677332_202006 It took me forever just to find an ISO, so hopefully this helps you out. 👍🏻