Hi @pgonza04 ,
You'll need to choose an Azure VM size that is capable of nested virtualization, check for the SKU Family with Hyper-threaded and capable of running nested virtualization:
Azure compute unit (ACU)
https://learn.microsoft.com/en-us/azure/virtual-machines/acu
More information here:
How to enable nested virtualization in an Azure VM
https://learn.microsoft.com/en-us/azure/virtual-machines/windows/nested-virtualization
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Best regards,
Leon