Theoretical dedicated gpu vm that paravirtualizes to other guest VMs

I was just wondering is it theoretically possible to have a pcie dedicated GPU in a vm that then paravirtualizes its graphics to another guest vm. Or is this not how paravirtualization works

Like this:
PCIE GPU VM —> virgl maybe → app qube

Also is it it safer to do PCIE gpu vm to paravirtualization app qube, or is there no good reason to do this and just do straight up pcie gpu passthrough to the app qube

Has something like this existed or am I missing something

There’s a different approach that works with newer CPUs:

Also on the topic of a dedicated GPU VM: