Sandboxes come in different flavors. But they are all forms of virtualization. In this case, the sandbox will have its own copy of Windows OS (including registry). It will need network emulation also, since the program listens for other copies on the local network. If sandbox does not have proper networking capability, then you can just block program with windows firewall rule.

Again, I do not know if this conflicts with any end user agreements. These are procedures I take when making a program portable. I do this when a program requires a different version of the OS than I am using on host machine.

I also use this for untrusted code, which is everything until I find out different.