The first risk with virtualized setups is DRMs, if your uni use any kind of "professional" software with student or university wide license that makes use of pain in the ass DRM, you will be hung dry. That's the most probable reason. Typical culprits are CAD software, electronic design software, Adobe, etc.
The second risk is if they want to control your setup in some way with some sort of fleet management software. Windows VM inside another OS should be fine with that, but you never know.
Your escape hatch may be a big windows machine 16G+, preferably 24G minimum, and run your linux env in WSL2, android in WSA, or use Hyper-V, etc.
OP can still reinstall windows as main OS if he runs into a specific problem with a VM but that is very unlikely.
Most probably his UNI just do not want to hear excuses like "but I am running X and it is not working on my Operating System!" and have to deal with supporting people on stuff they don't know / don't want to know.
