I have recently been reading literature on geometric constructions of representations of affine Lie algebras by Nakajima and others. In particular, the representations arise as cohomologies of moduli spaces of sheaves on a surface.
For a smooth surface, $S$, if we consider the Hilbert scheme of $n$-points $S^{[n]}$, for a suitably chosen cohomology theory, the vector space formed by,
$$\bigoplus_{n=0}^\infty H^*(S^{[n]})$$
is a highest weight representation of the Heisenberg algebra on $H^*(S)$. A recent paper has shown if $S$ is an ADE surface, like those studied in the context of gauge theory, one obtains a larger action of an affine Lie algebra of corresponding ADE type.
Since Verma modules appear in conformal field theory, is there also a physical context or motivation for such geometric constructions of representations (including string theory and more broadly gauge theory)?