[nellydpa]

You can access memory within a VM, not outside of a VM. Host machine with a hypervisor is not within a VM instance, so it will not be able to read your VM memory. The memory is encrypted all the time, but when the instruction has to be executed on CPU, memory controllers (only and only have access to the keys of this VM) decrypt the instruction to execute it on cpu in clear. For FHE, cpu instructions are executed on AES encrypted blocks, and will take significant time, so not very practical today. Does it make sense?