Thanks for posting your question in the Microsoft Q&A forum.
Nested virtualization is already enabled by default on Ubuntu VMs in Azure, including Ubuntu 20.04. You don't need to manually enable it for your Ubuntu VM. To verify if nested virtualization is enabled, you can follow these steps:
Connect to your Ubuntu VM using SSH, run the following command to check if the required kernel module is loaded:
lsmod | grep -i kvm
cat /sys/module/kvm_intel/parameters/nested
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