My development environment is mixed. I have a VM of Windows XP that runs on a remote server and connects to one of my NFS shares. This VM downloads and compiles the current Gitlab version of Open Watcom.  I also use this VM to compile WatDOS files. I will try and switch Open Watcom and WatDOS to ArcaOS if I can get it on the NFS share.

The VM has a spare drive attached which is a FAT formatted image. Once the WatDOS source is compiled, the files (except the boot sector) are copied to the drive image. Next, switch to the Linux system which is also attached to the NFS share.

From the Linux system, the boot sector is transferred to the hard drive image. The image can be booted using Bochs or Qemu.