Just now I tried the same thing on a Digital Ocean Droplet (a fancy name for a VM) in the cloud. And it works!
I do not know which hypervisor Digital Ocean uses, but it clearly works with that one nested. Normally with neofetch I can see which hypervisor is being used. For example with AWS neofetch says "Host: HVM domU”, which I believe is Xen. And with Linode it says “Host: KVM/QEMU”. But with Digital Ocean it says “Host: Droplet” - I guess they are hiding it?
Interestingly, the VM running nested says “Host: KVM/QEMU” and not “Host: LXC/LXD”!
It is a shame that it will not work under VMware. I hope one day this is fixed.
By the way you mentioned that nested virtualization is not always reliable on Intel. So I assume you are saying that AMD is a better choice? Is there a specific technical reason for this?
Thanks.