I was doing some client work recently at a bank, where most of their engineering is offshored one of the big offshore companies.
The offshore team had to access everything via virtual desktops, and one of the restrictions was no virtualisation within the virtual desktop - so tooling like Docker was banned.
I was really surprsied to see modern JVM development going on, without access to things like TestContainers, LocalStack, or Docker at all.
To compound matters, they had a single shared dev env, (for cost reasons), so the team were constantly breaking each others stuff.
How common is this?
Also, curious what kinds of workarounds people are using?
Having worked for a bank I will add my jaded opinion. Throw logic out of the window. Banks have their own regulations, history and internal policies. Finding a job is hard right now so one may have to grin and just accept it. Don't think too much about it.
Ask them if you can use VMWare or VirtualBox in the virtual desktop and get a VMWare license assigned to you. It's clunky but something they might actually have and may save some headaches. If this is an option ask them which Linux ISO is permitted and where it is.
How common is this?
Very common for a bank especially for offshore or remote employees.
Also, curious what kinds of workarounds people are using?
Nobody outside of the bank will like this answer. Ask them what work around is permitted within the policy. If your questions are always without emotion and always centered around policy they may grow to like you and with time you may earn more trust than others making your job just a little easier.