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Azure Lab Services Blog
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Nested Virtualization Tips

planetmaher's avatar
planetmaher
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Jul 21, 2020
Azure Lab Services provides the ability to create a template machines with nested Hyper-V virtual machines.  See Enable nested virtualization on a template virtual machine in Azure Lab Services docum...
Updated Jul 20, 2020
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Jim Ratsch's avatar
Jim Ratsch
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Feb 19, 2021

I ran into similar limitations, specifically when using nested virtualization. You may want to consider checking out Azure DevTest labs, as it has a lot more flexibility and you can use more storage, additional drives, upload your own, etc. 

 

I've heard that more flexibility may be coming to ALS, but in the meantime, DevTest Labs may work out well for you.

 

Hope this helps!