Github user rhtyd commented on the issue:

    https://github.com/apache/cloudstack/pull/1542
  
    @jburwell nested VM is something tricky to test, we can support this as a 
subtle feature but not a generally supported one. In our test/trillian 
environment, we're already running nested virtualization. I'm not sure 
investing time on inception of a test environment is useful. The feature is 
specific to vmware, I don't understand why KVM needs to be involved.
    
    A quick test could be to run a guest VM on VMware with specific cpu flags 
(say vmx, smx, ht) and verify that the VM launched with these flags have the 
cpu features for example, the test could do: (1)ssh into the vm, (2) cat 
/proc/cpuinfo and (3) grep `flags` for specific cpu flags such as vmx, ht etc. 
I think such a test should work with the default centos template or with 
macchanina.
    
    The feature could also be written and tested in such a way to add `any` 
key/value details on a VM and be interpreted by the hypervisor specific 
resource.


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