The /home/Virtfs Directory is created for users with Jailshell. Virtfs is bind mount to some system files. If you delete the files in virtfs, you delete the actual system files they're bind mount to; that's very bad idea. There are two option to get rid of the /home/virfs directory:
Backup your/your clients' data, request OS reload from your host and restore your clients' data
It is best not to touch that directory. Go through the list of users in WHM >> Manage Shell Access and disable Jailed Shell for users.
For more information you can refer virtfs PDF File