Solve VM live migration problems with Windows Server 2016 nested VMs.

Q. I am trying to live migration a VM that is hosting other VMs but it fails, why?

A. Nested virtualization introduces a number of limitations to the VM that is hosting other VMs (the first layer VM that runs on the physical host). Live migration is one of the features that will not work with nested virtualization (but will work for the innermost VM). All of the restrictions are documented at https://msdn.microsoft.com/en-us/virtualization/hyperv_on_windows/user_guide/nesting but include:

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