You can resize the VM's window while that VM is running. When you do, the window is scaled as follows:
If you have scaled mode enabled, then the virtual machine's screen will be scaled to the size of the window. This can be useful if you have many machines running and want to have a look at one of them while it is running in the background. Alternatively, it might be useful to enlarge a window if the VM's output screen is very small, for example because you are running an old OS in it.
To enable scaled mode, press Host key + C, or select Scaled Mode from the View menu in the VM window. To leave scaled mode, press Host key + C again.
The aspect ratio of the guest screen is preserved when resizing the window. To ignore the aspect ratio, press Shift during the resize operation.
If you have the Guest Additions installed and they support automatic resizing, the Guest Additions will automatically adjust the screen resolution of the guest OS. For example, if you are running a Windows guest with a resolution of 1024x768 pixels and you then resize the VM window to make it 100 pixels wider, the Guest Additions will change the Windows display resolution to 1124x768.
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Otherwise, if the window is bigger than the VM's screen, the screen will be centered. If it is smaller, then scroll bars will be added to the machine window.