@Joomla Apologies for the delay in response and all the inconvenience caused because of the issue.
Nested virtualization is supported in several Azure virtual machine families. This capability provides great flexibility in supporting scenarios such as development, testing, training, and demonstration environments.
You can refer to this for more information.
There is a similar thread here on StackOverflow as well which might be helpful to you.
Hope it helps!!!
Please "Accept as Answer" if it helped so it can help others in community looking for help on similar topics.