Virtual machine Nested virtualization

Question

Hello

i would like to configure a nested VM (windows Server DC 2025 with nested linux machine), but i can't install HyperV service. When trying to do the installation i received the error "Hyper-V cannot be installed because virtualization support is not enabled in the bios".

the VM type is : Standard E2s v3

security type : standard

OS : Windows (Windows Server 2025 Datacenter Azure Edition)

location : West Europe (Zone 1)

thank you in advance

Answer 1

FWIW I had the same error message trying to get nested virtualisation working on Azure with a Windows 2025 Server of various supposedly supported VM sizes, in the end the issue turned out to be the hypervisor not being set to auto-start in the boot config. I'm not sure if that's something that happens automatically since Windows 2025 Server or when you're nesting HyperV in Azure because very few setup guides refer to it, but this troubleshooting article does - https://learn.microsoft.com/en-us/troubleshoot/azure/virtual-machines/windows/troubleshoot-vm-by-use-nested-virtualization

The TLDR is to run the following command and see if hypervisorlaunchtype appears on the output -

bcdedit /enum

If hypervisorlaunchtype is not listed then you can add it with the following command followed by a reboot -

bcdedit /set hypervisorlaunchtype auto

Answer 2

Hello Pim_s,

Can you try stop and start on your VM once and then RDP into the Azure VM, open PowerShell as administrator and run command below to install the HyperV and DHCP server roles.

Install-WindowsFeature -Name DHCP,Hyper-V  –IncludeManagementTools

For more details around installing Hyper-V, please refer : https://techcommunity.microsoft.com/blog/itopstalkblog/how-to-setup-nested-virtualization-for-azure-vmvhd/1115338