Enabled booting into recovery from a locally connected Time Machine drive. Step 1: Getting a Reliable "Fixed" DMG

Many users who download old Lion DMG files today encounter a frustrating error: "This copy of the Install Mac OS X application is damaged and can’t be used to install macOS."

Since Apple provided Lion as a digital download, the installer was an application, not a bootable disk image. To boot it in a VM, the internal InstallESD.dmg must be converted.