Seeking smallest Mac OS vm to run Intel apps using Rosetta

I recently upgraded to Parallels 26 on my Macbook Pro running Tahoe. I discovered that future versions of Mac OS will not run Intel based apps using Rosetta.
I have quite a collection of old Intel programs that I would like to continue to run, so I thought I would create a Mac OS vm that I could use to continue to run Rosetta enabled apps.
I would like to create the smallest Mac OS VM that I can for this purpose. Is there some way to get a Mac OS iso which is as small as possible for this purpose? I was thinking of using Mac OS Sierra since it will run on Apple Silicon and support Rosetta, but I am not sure about how to trim the VM installation to be as small as possible.
I would appreciate any suggestions on how to create a minimal Mac OS vm for my purposes.
Thanks.

 

I meant to say that I was thinking of using Mac OS Sequoia since it will run on Apple Silicon.