Istio will automatically be applied across your kubernetes cluster so will be perfectly happy with machines (virtual or physical) as soon as they are added to your kubernetes cluster.

So assuming you have correctly configured your virtual machine (specifically network interfaces), you can do a kubeadm join

Configuring VMs: https://medium.com/@shalithasuranga/simulating-a-data-center-with-virtual-machines-in-your-computer-76a434c02585

Joining kubernetes cluster: https://stackoverflow.com/a/50198349/10461045