Yes, we can say that the adverb “virtually” is an alternative to the adverb “practically,” but in actual usage, I wouldn’t say that they are practically interchangeable. Their dictionary definitions are, of course, almost identical, as we can see from these entries in my digital Merriam-Webster’s 11th Collegiate Dictionary:
virtually
Function: adverb
Date:15th century
1 : almost entirely : NEARLY
2 : for all practical purposes <virtually unknown>
practically
Function: adverb
Date: 1571
1 : in a practical manner <look practically at the problem>
2 : ALMOST, NEARLY <practically everyone>
Even if “virtually” and “practically” are almost synonymous, however, I must make the caveat that the semantics of the two are significantly different. For instance, let’s take what I’ve just said: “I wouldn’t say that they are practically interchangeable.” Except in an academic exercise like this, you won’t ever catch me using “virtually” in place of “practically” in that statement. I won’t ever say or write “I wouldn’t say that they are virtually interchangeable.” In such usages, “practically” has a practical, matter-of-fact flavor, while “virtually” has a hint of affectation that borders on what I’d call hoity-toityness. Indeed, one of the very few instances when I think “virtually” can replace “practically” without causing me discomfort is in the case of science or technical statements, as in this hypothetical sentence: “The two positions of the electron at that energy level are virtually interchangeable.”
As to why this is so, I think we need to take up as well the meaning of the adjective “virtual,” from which the adverb “virtually” originated:
virtual
Function: adjective
Etymology: Middle English, efficacious, potential, from Medieval Latin virtualis, from Latin virtus strength, virtue
Date: 15th century
1 : being such in essence or effect though not formally recognized or admitted <a virtual dictator>
2 : of, relating to, or using virtual memory
3 : of, relating to, or being a hypothetical particle whose existence is inferred from indirect evidence <virtual photons> — compare REAL 3
4 : being on or simulated on a computer or computer network <print or virtual books> <a virtual keyboard>: as a : occurring or existing primarily online <a virtual library> <virtual shopping> b : of, relating to, or existing within a virtual reality <a virtual world> <a virtual tour>
As we can see, the word “virtual” has a very slippery sense of perceived or imagined strength and of theoreticalness to it, which contrasts to the workaday, down-to-earth denotation of the noun “practical.” So, when it comes to a choice between their adverb equivalents when I’m talking about mundane matters, I’d take “practically” over “virtually” anytime.