When nested virtualization is used on top of VMware, the guest is stuck on BIOS

Solution Verified - Updated -

Issue

In a nested virtualization setup with layer 1 hypervisor VMware and layer 2 hypervisor KVM, a layer 3 nested guest is stuck in the initial BIOS messages, with no attempt to boot whatsoever.

Environment

  • Hypervisor L1: Vmware ESXi 6.7
  • Hypervisor L2: Red Hat Virtualization Host (RHVH) 4.3 or Red Hat Enterprise Linux (RHEL) 7

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