Possible? Yes. Good idea? No.

That immutability means nothing the moment someone is on your VBR server and deletes that virtual machine.

I agree it’s not the best practice but if it can works so it’s better than no immutable at all. 

MFA also will be enable on VBR server for extra security. 

I disagree completely @Gili Sela. this builds up a false sense of security where even MFA in Veeam will not prevent deletion of the backups.

Please consider putting VBR on a VM in your virtual infrastructure and use this physical server exclusively as a Linux hardened repository.

I would have to agree with the suggestion here by Rasmus. Not a good idea or best practice to do it this way.

I concur with the comments here. Though possible, we recommend using some other means to put your virtual VBR server on, & use this phys box exclusively as your VHR.