Final answer:
A network sniffer, like Wireshark, needs to be installed on a VM to capture all network traffic, and the VM's network should be set to promiscuous mode.
Step-by-step explanation:
To capture all network traffic on a virtual machine (VM), you need to install a network sniffer or packet analyzer tool. One of the most popular tools for this purpose is Wireshark, which can capture and analyze network packets on many different types of networks. It's essential that the VM's network setting is configured to allow for promiscuous mode, as this will enable the capture of all network packets that pass through the VM's network interface, not just those packets intended for the VM itself.