The issue you originally reported is not related to the disk space on your real disk, so pointing to a new physical folder on your real machine shouldn't have any impact.
Another thing to check is if you have enough memory assigned to the virtual machine. See this answer on an earlier thread. https://communities.sas.com/t5/SAS-Studio/NO-space-left-on-device/m-p/435986/highlight/true#M4605
But why would the amount of memory available to the virtual machine have changed recently.
I am not an expert on using the virtual machine software but I suspect that it is saving a new version of the SAS university edition after you install it into VM software so that it can save the state of the virtual machine in some way. Otherwise this problem could never happen and it has been reported by others before you. So make sure you are asking it to make the new VM using the version of the SAS ova file as originally downloaded from SAS and not whatever file it is that creates to make the VM that you use to start up SAS UE on yoru machine.
If you have internet access just use
SAS® OnDemand for Academics
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