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If you mean, can you run Talos inside Harvester VMs, then I expect so, as Harvester provides virtualization via KVM under kubevirt, and the Talos docs say "Talos is known to work on KVM" (https://www.talos.dev/v1.6/talos-guides/install/virtualized-platforms/kvm/). That said, I don't know if anyone's tried it yet.

I meant more like running Talos as the Host operating system as well :O)

You can run any os you want as a vm

would be optimal to run as hypervisor host os as well

Harvester is tightly coupled to its base OS at this time. Even if you hacked your way through it, there are Harvester components that would require code changes to support this, including the zero-downtime upgrade functionality, and the daemons that are deployed to every harvester node for managing parts of the system like NTP servers, disks and their provisioning, etc.

are These put in via cloud init?