Two windoes installs on one machine?
-snip-
Ah. Well, if it's a psychological thing, would two different user accounts work? There's almost certainly a way (I wouldn't know if offhand) to uninstall programs for the specific user so that, say, your work account doesn't have Steam installed, but it's still there for your non-work account, which would help clean things up a bit and keep possible distractions minimized. And you can set different OS settings like background, theme, etc to make it as visually different as you need. A new user account would also mean you don't have to reboot to switch between them if/when you need to, so it's a bit faster, you don't have to worry about a second Windows install key or cloning your drive, and it's all pretty easy to configure from inside Windows itself.
As for virtual machines: I've never played with those, so I can't say. I don't know if you can run a Windows VM session from inside Windows, using the same OS data for both sessions. Someone more knowledgeable about VMs could probably say with more certainty.
And as for Linux: if you're in a big time crunch with your work, then yeah, Linux is probably a thing for later. As I said, the learning curve is small, but you do still have to deal with the learning curve.

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