Nested Virtualization is not a new idea. In fact, we announced our first preview of Nested Virtualization running on Windows way back in 2015. From that Windows Insider preview to now, Nested...
Updated Jun 13, 2020
Version 2.0
Blog Post
I just got the release preview for Windows 11 Pro (22000.194) for Windows Insiders. I created a Windows 10 VM (21H1) and enabled nesting for that VM and installed the hyper by role for that VM.
I have not had any performance degredation and CPU utilization remains around 1%-2% when idle and typing up this message. Sometimes CPU utilization will spike but it is most likely to Windows 10 VM doing background stuff or somethign since it doesn't usually last long, but still not to the point to causing me any problems.
I also have not had any stutters when playing some games while that VM is running either. I am wondering if the issues you have are build or hardware related, although i am running AMD as well. It could also be a bug or something from the install?
I have the following:
AMD Ryzen 3900X
32GB Ram
X570 Chipset Motherboard (Asrock)
VMs installed to SATA SSD and main OS on NVMe