It is technically possible now if providers make changes to not tightly couple the machine reconciliation to the same infra cluster. I created a demo last year where the control planes where VMs (using CAPMVM) and the workers where physical machines (using BYOH): https://twitter.com/fruit_case/status/1555554512529653761?s=61&t=zAZ8pZ78GnN59Qr_4a0cXA