How to enable nested virtualization in Parallels Desktop on macOS Big Sur

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I am running Parallels Desktop on macOS Big Sur, and would like to use nested virtualization feature in the virtual machine. How can I do this?


Note: Shut down the virtual machine before changing the hypervisor type.

To enable nested virtualization feature, set hypervisor type to Parallels in the virtual machine's configuration:

  1. Open virtual machine configuration > Hardware > CPU & Memory > Advanced Settings, and set Hypervisor type to Parallels.
  2. Enable Nested Virtualization checkbox will appear. Select it, and then click "Yes" to enable the feature.

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