the distro is now facing problems installing certain programs for software development
What programs? What kind of errors?
I think there are issues related to the immutability of the distro
Unlikely. That only applies to the OS partition.
they told me they appreciate its friendlier KDE interface so I wish to avoid switching from this distro again if possible
Pretty much every distro will have KDE Plasma optional.
Thus I intend to ask here if it is possible to arrange something for easing development related tasks e.g. VM, distrobox etc. or whether it is easier to simply switch to some other compatible distro.
Hard to say without knowing what the problem is but switching distros rarely solves anything.