Windows 10 S is a streamlined version of Windows 10 designed for schools and businesses. It only allows users to download and install apps from the Microsoft Store, providing a more secure computing experience. Yes, Windows 10 S can run on VMware, as it is a version of Windows 10.
It is possible to convert a full version of Windows 10 to Windows 10 S by using the Windows Configuration Designer, but this is not recommended unless you have a specific reason for doing so.