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Azure Virtual Desktop
A Microsoft desktop and app virtualization service that runs on Azure. Previously known as Windows Virtual Desktop.
1,844 questions
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This is not a limitation of Azure Virtual Desktop, but for the Android Simulator.
I would recommend you to check if you are using a VM type that supports nested virtualization and enable it. With that, you will get limited support for it.
The simulator is primarily designed to run in a physical device.
However, I found a similar issue here which had a similar error "currently requires hardware acceleration"
Hope this helps.
If you need further help on this, tag me in a comment.
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