An Azure service that is used to provision Windows and Linux virtual machines.
Looks like you’re dealing with a nested virtualization issue., There are specific networking constraints that can cause VM2 to be isolated from external networks. This may be what we have to check.
Try these suggestions from similar issues I checked:
Create an Internal Virtual Switch, assign an IP to it and create the NAT network. You can then try to configure the vm2 to use the NAT switch.
If that does no work, you can also test with an ICS on the adapter.
See below for reference:
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Regards,
Abiola