VirtualXposed is just an app to create virtual spaces which we can able to run the apks as plugins. So, in those Parallel space, we can also be able to run some xposed modules without needing of Root/Unlocked Bootloader/Modifying System Image.
And also it uses Exposed to load the Xposed Modules and do some basic services. VirtualApp creates a container to install apks and apps from the system.
All apps run inside this container, and this library basically provides system calls to work apps properly inside the parallel space.
Basically, Xposed Framework is some kind of platform that helps you to customise the android appearance and functionalities with the help of Modules.
So, users are likely to modify their system-wide things and all with this framework. There are tons of things you can do with this one by enabling the modules of the particular aspect.
This is the completely Rootless solution for the Xposed Framework, but it is limited. In future, there is a possibility to upgrade this app to at least 50% functionalities of Xposed.
Currently, basic Xposed Modules are working with the VirtualXposed which only deals without system part. Root is mandatory to deal with the system things. So, it cannot.