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Probably the most notable example* behind DF was Goblin Camp, which was open sourced when the creator quit after a while, but was definitely playable and had big plans (doesn't everyone xD). Interestingly enough, someone does seem to have picked it up more recently after all those years of inactivity, which I didn't notice until you asked just now...
For a good tutorial for making a VM, I recommend Terrence Parr's lecture on making your own VM. For a good code example, take a look at the guts inside the Yarn dialogue system, which uses a VM to control very complex dialogue logic.