What about installing a PowerPC Linux dist. on SheepShaver instead of MacOS,
and then installing MOL on it, and then running OS9.X?
I don't see a reason why it shouldn't work.
The only question is can Linux be installed on SheepShaver x86?
It won't work. SheepShaver is a MacOS runtime enviroment rather than a hardware Macintosh or CHRP emulator, from what I can gather. If SheepShaver does not emulate an MMU then any Unix based OS will not work.