I've always used systemd-detect-virt for this same use case.

Can you confirm if it works both on sysvinit and systemd based
init setups ?

Bruce

In message: [meta-virtualization] [PATCH] virt-what: add new recipe
on 06/04/2022 Ross Burton wrote:

Signed-off-by: Ross Burton <ross.burton@...>
---
recipes-extended/virt-what/virt-what_1.21.bb | 11 +++++++++++
1 file changed, 11 insertions(+)
create mode 100644 recipes-extended/virt-what/virt-what_1.21.bb

diff --git a/recipes-extended/virt-what/virt-what_1.21.bb b/recipes-extended/virt-what/virt-what_1.21.bb
new file mode 100644
index 0000000..aa235b3
--- /dev/null
+++ b/recipes-extended/virt-what/virt-what_1.21.bb
@@ -0,0 +1,11 @@
+SUMMARY = "Detect if we are running in a virtual machine"
+HOMEPAGE = "https://people.redhat.com/~rjones/virt-what/"
+LICENSE = "GPL-2.0-only"
+LIC_FILES_CHKSUM = "file://COPYING;md5=b234ee4d69f5fce4486a80fdaf4a4263"
+
+SRC_URI = "https://people.redhat.com/~rjones/virt-what/files/${BP}.tar.gz"
+SRC_URI[sha256sum] = "12cb455334aa4cfd53ab78f27e2252e94d1f676dd093f48327ed94d8080d1f7b"
+
+DEPENDS = "perl-native"
+
+inherit autotools
--
2.25.1