I don't understand. I thought # was the prefix for the level 1 VM, not for the level 0 OS (the host). If you used # to send commands to level 0, what was the prefix for level 1?
System admin privilege #cp shutdown works on the real machine (unless the prefix is changed).
I set the first virtual level system prefix to be !cp, second level to @cp, third level to $cp (look at the top of your number keys to see the sequence).
I SHOULD have walked backward $cp shutdown ... @cp shutdown ... !cp shutdown but habit caused me to type #cp shutdown. Sigh.