Hey,
Just to add, there are Hyper-V best practices and recommendations to follow, which will allow you to get maximum performance out of your environment. The following link might be helpful:
https://learn.microsoft.com/en-us/windows-server/administration/performance-tuning/role/hyper-v-server/
In any case, I would recommend you analyzing current workload in your environment to plan the VM configuration.
Speaking about Failover Clustering, it requires shared storage, as mentioned. It could be a separate SAN or different kind of VSAN (to utilize your local storage). S2D is a great option, which will allow you to create desired shared storage for Failover Cluster.
StarWind VSAN is a great alternative, which can provide replicated storage pool for a Failover Cluster. You can choose between free and paid versions. Both will do the job for you.
https://www.starwindsoftware.com/resource-library/starwind-virtual-san-for-hyper-v-2-node-hyperconverged-scenario-with-windows-server-2016/
Cheers,
Alex Bykovskyi
StarWind Software
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