Nested virtualization for Hyper-v

Nested virtualization is a feature that allows you to run Hyper-V inside of a Hyper-V virtual machine.

Prerequisites

A Hyper-V host running Windows Server 2016 or Windows 10 Anniversary Update.

A Hyper-V VM running Windows Server 2016 or Windows 10 Anniversary Update.

A Hyper-V VM with configuration version 8.0 or greater.

An Intel processor with VT-x and EPT technology.

Configure Nested Virtualization

While the virtual machine is in the OFF state, run the following command on the physical Hyper-V host.

Set-VMProcessor -VMName <VMName> -ExposeVirtualizationExtensions $true

After, you must make the following configuration changes on the VM that function as a Hyper-V host.

On the Memory page, disable Dynamic Memory. Or using PowerShell cmdlet.

set-vmmemory -vmname server1 -dynamicmemoryenabled $false

On the Processor page, or using PowerShell cmdlet set Number Of Virtual Processors to 2 or more.

set-vmprocessor -vmname server1 -count 8

On the Network Adapter/Advanced Features page, turn on MAC Address Spoofing.

Set-VMNetworkAdapter -VMName Server_1 -Name "NetworkAdapterName" -MacAddressSpoofing On

If you do not know Network Adapter Name, you can using Get-VMNetworkAdapter command to view.

Now, you can start the VM, install the Hyper-V role, and create nested virtual machines. While the VMs run on the nested host, there are some Hyper-V features that do not work, such as live memory resizing, checkpoints, Live Migration, and Save/Restore.