A CPU in a virtual machine is only virtual so I would assume that the microcode of the manufacturer does not need to be loaded. The same is probably valid for GPUs.
Is this correct? Is there any risk or disadvantage of using or not using it in a KVM/QEMU VM?
I am talking of the microcode update that takes place early in the boot process of the Linux VM.
Both host and VM CPUs are the same. The host does load the latest microcode upon its boot.
A reply with references would be appreciated as I have done an educated guess myself already.