There are some prerequisites for nested virtualization:
- Hyper-V host or guest must be Windows Server 2016 or Windows 10 v 1607
- Guest must be with configuration version 8.0 or higher
- Host must have Intel processor with VT-x and EPT technology.
Note alsow that dynamic memory and hot add/remove memory feature does not work in nested VMs.
There are also additional networking configuration necessary for this to work.
More info here: