Hi - for evaluation purposes, AKS-HCI will install with less than 256GB RAM - inside your Azure VM, can you provide details of your nested HCI nodes? How many vCPUs, how much memory, disk etc?
It's not recommended to run AKS-HCI on a nested Azure Stack HCI cluster in Azure, due to the 3 levels of nesting (Azure hypervisor, Azure VM hypervisor, AzSHCI hypervisor), however it is possible.
In a production environment, the minimal configuration that is recommended is an Azure Stack HCI cluster (minimum 2 nodes) with at least 16 cores and 256GB RAM per node, but AKS-HCI will install and run fine on less - it's largely driven by your workloads, the number of worker nodes etc.
Your OEM of choice should be able to provide pricing for a solution.