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For some blasted reason, choosing default format option (HPFS) during installation grows the vm disk size to its maximum. (Virtual PC)
At least it boots fine though, unlike OS/2 1.30.2.
I would use a newer version of VirtualBox for OS/2 emulation. Virtual PC's OS/2 stuff was mostly meant for Warp 4. Also, OS/2 1.30.0 and earlier have a trap error on anything newer than a 386.