Hi Karabo,
Yes, it is possible. You need to use a VM size that supports Nested Virtualization.
Standard_D2s_v3 does support Nested Virtualization, however, it must be set to Standard security. When creating this VM using D2s_v3 you must create it using Standard security. The option is on the Basics tab when creating the VM in the portal.
When you get to the Review page, right before you click to deploy the VM, double-check that it says Standard security and not Trusted launch. Sometimes the portal can switch it to Trusted launch even though you purposefully selected Standard so it is important to check it again before clicking Create button.
Once you have the VM created you can install Hyper-V inside of it, create VMs, etc.
Please click Accept Answer if the above was useful. If something is unclear or if you still need assistance please add a comment below.
Thanks.
-TP