Azure: Nested Virtualization fails

I am building an Azure-based Lab for one of my Customers.

I selected a VM supporting Nested Virtualization (Standard_E8s_v6), but when I tried to enable Hyper-V on it I received an error:

“Hyper-V cannot be installed because virtualization support is not enabled in the BIOS”

Copilot brought suggestion to add properties.additionalCapabilities and set nestedVirtualization to True using Powershell:

Update-AzVM -ResourceGroupName <YourResourceGroup> `
            -VMName <YourVMName> `
            -Set @{ "additionalCapabilities.virtualization" = "true" }

unfortunately that did not work – the error says there is no such member. I tried to edit ARM directly using Resource Explorer, but got the same error:

"Could not find member 'nestedVirtualization' on object of type 'AdditionalCapabilities'. Path 'properties.additionalCapabilities.nestedVirtualization', line 1, position XXX."

Resolution:

from the new VM I run the following command in an elevated Command line:

bcdedit /set hypervisorlaunchtype auto

after that I rebooted the VM and installed Hyper-V successfully.