Grab the vs_emulator.exe from an old Microsoft download (or use a repack from XDA). Install it to C:\Program Files (x86)\Microsoft Device Emulator\.
Let’s clear up a critical technical detail. When you search for a Windows Mobile 6.5 ISO, you won’t find a standard bootable disc image like you would for Windows XP or Linux. Windows Mobile 6.5 Iso
Right-click on your desktop → New → Shortcut. Grab the vs_emulator
Breakdown of flags: