Hello, @Stephen Lynch !
How would I go about creating a lab where students install copies of Windows?
This is a deceptively simple sounding task but installing Windows on a VM creates some challenges.
I spoke with some other people and we all agree that nested virtualization is going to be your best bet and using Windows 11 as the base OS is going to be the least complicated to set up. We've written a script you can use to enable nested virtualization:
Invoke-WebRequest 'https://aka.ms/azlabs/scripts/hyperV-powershell' -Outfile SetupForNestedVirtualization.ps1 .\SetupForNestedVirtualization.ps1
As far as the licensing portion is concerned, it sounds like you are on the right track as I've heard of people using either evaluation versions or a volume license keys. I'm not a licensing expert in this area though, and while the evaluation center describes these versions as "a free trial to exploring technical documentation, virtual labs, and demos", I would contact sales to get an official answer regarding licensing.
I did get it fully working. I used the medium nested VM CPU in Azure labs with windows 11 image for the base. Running your scripts to enable hyper-v etc worked great. I had trouble at first but just a few changes to hyper-v Setup got me up and running. Enable secure boot and trusted platform module. Also, ensure 4gb of ram at startup on the VM or install will fail. Trial enterprise edition of Windows 11 worked fine as the machine is wiped the same day as the install. To make it super simple and not need to explain hyper-v I put a shortcut in the desktop to load the nested virtual machine. And another shortcut to a PowerShell script to reset the VM to the checkpoint to wipe the install if it fails or they want to practice again. The students need to screen record what they do on the install and clipchamp in the windows 11 lab does achieve this.