For your scenario, consider Podman with Colima or WSL 2. They balance ease of use, resource efficiency, and Linux tool integration. Podman with Colima offers a Docker-like experience, while WSL 2 seamlessly integrates with the Windows environment. Choose based on your needs and preferences, trying both to find the best fit for your open-source game development project.
> I need a solution to run Linux in a virtual environment on Windows
WSL2 is exactly this, you can also use VMWare or VirtualBox. In other words, your base linux environment is not containerized, it is virtualized. This is a requirement for any non-linux OS (currently, MS is looking into native container support afaik), because containers are built on kernel features