The "least bad" settings for Chrony as the NTP server on a virtual machine

The question you linked to is a good example of received wisdom in an established answer becoming so out-of-date as to be just plain wrong for the majority of use cases. Running NTP servers in VMs on modern hypervisors with modern guest kernels is not usually problematic. On a LAN, VMs can achieve sub-millisecond accuracy (I just checked a few of my own VMs and they were all sub-0.5 ms). Many of the public pool servers run in VMs.

To your question:

1. Verify that your kernel has correctly autodetected the clock source: grep . /sys/devices/system/clocksource/clocksource*/[ac]*clocksource. This is typically tsc for bare metal, and Hyper-V, KVM, and Xen have clock drivers which are named for their hypervisor (hyperv_clocksource_tsc_page, kvm-clock, and xen).
2. If you're running under KVM or Hyper-V, you can configure a local PTP driver which provides additional accuracy. See https://docs.microsoft.com/en-us/azure/virtual-machines/linux/time-sync and https://opensource.com/article/17/6/timekeeping-linux-vms for more details (the latter is a worthwhile read explaining all of the recent improvements which make timekeeping in VMs much better than it used to be). TL;DR for chrony config: refclock PHC /dev/ptp0 dpoll -2
3. Four peers is a minimum for accurate timekeeping - better to add the public NTP pool or some additional Internet-based sources (time.apple.com is one I often use) and benefit from both more peers and automatic replacement.
4. Don't have your new VM as the only time server in your network. Set up your own local equivalent of the pool, where you provide multiple NTP servers for all clients via a multi-valued DNS entry, and have each of these sources peer with 4-10 lower-stratum sources.
5. If you have a view of the sky (for a GPS receiver) or endless money (for an atomic clock), consider adding a local stratum 1 server which has low latency to your VMs. I use a BeagleBone with a GPS card; there are also many Raspberry Pi-based solutions, and a few affordable off-the-shelf devices, like LeoNTP.