I am fairly certain that there was some work about this but I'm not sure if anything succeeded. Regarding the ActionScript part, a plausible solution would be to target Haxe with the OpenFl library. OpenFl is a Haxe library exposing the same API as Flash so you can use it to compile projects to the targets supported by Haxe (JS, C++, ...). Some advanced AS code could be tricky to translate, but using untyped sections and restricting it to JS it could maybe be possible?
What I had in mind was more about converting the programs (SWF files) instead of fixing the VM. I know that there were some open source VMs, but were there some successful attempts at converting SWF files to a different format?
Because it would be hilarious to need to access the system to bring up the system but the image can't run because the system's not up, keep a copy of the image laying around ready for any desktop running vmware workstation. I also keep a vcenter laying around for desktop use which has occasionally come in handy.
In the free software world someone would provide a virtualization appliance ready to run, but there are too many copyrights and lawyers involved. There's probably an illegal torrent out there somewhere, I suppose if you really trust your firewall it couldn't be that bad.
vmware is the last "serious" "general purpose" thing I'm aware of that requires flash.