I found this game I used to play a very long time ago and I wanted to experience it again. Unfortunately I wasn't able to run it in Windows 10 / Windows XP SP3 VM because it would lag on modern hardware.
Here is what you need to do in order to get the game running:
Search for "Midtown Madness 2 (Europe) (Rerelease)" on TPB and download it
Copy all files inside MS\x86 to the game folder as well
Run dgVoodoo2.exe as admin and set the following:
Click the button .\ to create config file to MM directory
In "General" > "Output API" select "Direct3D 11 MS WARP (software)"
Go to "DirectX" tab and change the VRAM to 128MB
Click "Apply" > "OK" to exit.
Launch the game > Options > Graphics > select from Display drop down menu, "dgVoodoo DirectX Wrapper" > "Hardware (3D video card with T&L) from the Renderer drop menu.
Click "Done" and that's it!
Note that whenever you change the resolution it won't apply any changes to the game menu - you'll only see it once you start a race.
Midtown Madness 2 should now run very smoothly under Windows 10, even on Virtual Machines. Enjoy.