Hello @ccumaya ,
Thanks for reaching out to Microsoft Q&A platform.
Basically any v3 size Azure VM supports Nested Virtualization. Based upon your current SKU (i.e. D4sv3) you should be able to enable it .
A good blog on the nested virtualization and it's supported SKUs , how it works , etc. : https://azure.microsoft.com/en-us/blog/nested-virtualization-in-azure/
Sequence of PowerShell commands to enable Nested Virtualization are here: https://github.com/charlieding/Virtualization-Documentation/tree/live/hyperv-tools/Nested
Let us know if you have additional questions.
Regards,
Shiva.