Jazz1 was supposed to be played on a clean MS-DOS and the intro text actually warned when it detected Windows 3.1 etc.

But putting that aside, it should work fine under Windows 95/98 as long as TPPatch is installed. What VM program are you using? Does it virtualize a Sound Blaster compatible driver? And does it have an option to choose the desired CPU speed/type for the VM?

I know that most VM software just create a virtual envoirement without emulating a certain machine type.

As for the graphical glitches, I'm not familiar with those. I do know that Jazz1 somehow relied on a different resolution for in-game play than on the menu screens, that could trick the VM Window in some way though I'm not 100% sure.