Hello Kevin,
Thank you for posting on the Azure forums!
Currently Nested Virtualization is not supported on the Azure platform and you will not be able to use this feature on the Windows Server 2016 VM as well. Unfortunately we do not have an ETA on this but are working on making this possible. We request you
to keep an close watch on Cloud Platform
roadmap for any recent preview features or development features. It does not mention Nested Virtualization though at the moment.
You can always write to us on the feedback
link and let us know which features you would like to see on the Azure platform.
Hope this helps.
Regards,
Loydon
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