Yes, thats right. I also force all roms and options to UEFI in the bios and VT-d/IOMMU is enabled.
I'm using a Windows VM with GVT-d / UPT passthrough so within the VM the emulated video card is enabled as well as the Intel GPU, you just install the OS and then the Intel driver and then you can disable the emulated Standard VGA Controller in device manager afterwards if you want to (Leaving it enabled could also allow native VNC access whilst using the IGPU for transcode for example). To get HDMI or Analogue sound you can passthrough the Audio controller in the usual way. I think this config will work with new Linux kernels within a VM too. Arch tends to be running newer kernel and versions than Unraid so could be different but happy to try to help if people have questions.