Gave another try with the F96-CE_2.iso in a different VM
Booted and save fine as wizard indicated.
However, there are some minor issues with savefile/folder process
Although there several disks and partition and I'm booting from the ISO, it only offers to save in the first disk and partition it finds.
When I reboot from the ISO with the savefolder in the first disk and partition, never looks for it or finds it.
I tried to specify 'psave' typing 'c' at the boot screen, but it dropped me in the grub command line instead.
There you have to specify the entire grub boot command. I could not. I think that not many ordinary users can do this from memory.
Finally, although I'm booting from the ISO the boot menu says "boot from USB".
Maybe this is contributing to the specific save/discovery behavior. However, given the inability to easily add kernel commands and specify different 'pmedia' I can not evaluate the validity of this hypothesis.
I'm not sure how many of these changes are woof-CE changes or F96_CE-specific but I do not remember original fossapup acting like that. These apparent restrictions may offer other advantages but would be nice if at least the user can easily add boot parameters when booting the first time (or from the ISO), as the help menu suggests.
Thank you