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I've come across two different answers regarding Apple's Virtualization.Framework support for nested virtualization:

1. Yes, but only Linux guests 2. Yes, but only M3+

https://github.com/apple/container/issues/191

You are correct on both accounts, as of tahoe 26.3 you can't nest a macOS guest under a macOS guest. However you can nest 2 layers deep with any combo of layer 1 guest so long as the machine is running Sequoia and is M3/M4/M5.

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