the only ISO is the bootable media required to build Windows.
My suggestion would be to create a Windows 10 VM, configure it, update it then shutdown the VM, stop the VM services on your host and make a copy of the VM's VHDX file and VM Config files. That way you have a point in time snapshot of the configured machine.
If you're using Launchbox and mainly "portable" versions of the emulators then I would create a second Virtual Disk (ie D Drive) and store all your Launchbox folders / Emulators / Games there. In that way you can, as you said, just point LB at it