I do dispute your assertion that virtual memory was "disabled". It isn't possible to use V86 mode (what the Intel Docs called it) without having a TSS, GDT, LDT and IDT set up. Being in protected mode is required. Mappings of virtual to real memory have to be present. Switching in and out of V86 mode happens from protected mode. Something has to manage the mappings or have set it up.
Intel's use of "virtual" for V86 mode was cursory - it could fail to work for actual 8086 code. This impacted Digital Research. And I admit my experiences are mostly from that side of the OS isle.
I did go back and re-read some of [0] to refresh some of my memory bitrot.
[0] https://www.ardent-tool.com/CPU/docs/Intel/386/manuals/23098...