

Sounds like a freak accident rather than the fault of the VM.
I literally use a GPU for passthrough on my Windows 10 (and macOS) VM; PCIe is a much more complex protocol and much easier to F up than USB.
I’ve used my iPhone many times through Windows and been fine, as well as whole USB keyboards and mice (just simple ones); I think I might have even updated an iOS device once, though I can’t remember if I actually did. I’ve also used an iPod Nano 7th through an 11 LTSC VM before.
I could see some things being a little finicky, but simply managing a Zune with a VM probably causes no issues. It’s probably been eons since it got a firmware upgrade anyway.

Post system specs here just to be safe. If it’s an older machine, there could be various hardware failures. “Monitors” makes it sound like a desktop, but you should clarify just to be safe, and perhaps indicate if has PCIe slots or is more of a mini PC.
Also, what do you mean by “monitors going dark”? Are the backlights on, or are they absolutely dark?