I tried using nested virtualization, too, a couple of weeks ago.

I was using a 3 node HCI CentOS 7.8 cluster and I got pretty far. Configuring 
KVM to work with nested page tables isn't all that well documented but I got 
there, I even installed some host extensions, that seem requried.

Even the actual nesting, that is a VM run inside a VM did work, the setup came 
to the point where it ran the hosted engine on temporary local storage, before 
it's picked up, fixed up to run on the Gluster storage and restarted there. But 
that process failed eventually, evidently because the overlay network doesn't 
support nesting. Where the initial hosted engine is using a local bridge with 
the (in this case virtual) host--and that works--afterwards it's using the 
overlay network and that evidently doesn't.

It was only then when I ran across a very obscure message somewhere in this 
mailing list, that oVirt on top of oVirt in fact does not work at all! Up to 
that point it just wasn't "supported".

When a hypervisor producer speaks of nested virtualization support, I would 
understand it to mean that you can run their product under their product, 
ideally also somebody else's product. I've run ESX on VMware workstation and 
that was pretty cool.

In the case of oVirt from what I have gathered (and I'd love to be wrong), it 
is supposed to only mean that you can run oVirt on top of KVM.

Not the other way around, nor in any other way most likely.

To me that looks much more like an internal Redhat development facility, than a 
product feature.

Of course I mostly wish they'd find a way to make it work like it does on 
VMware.
But next on my wishlist would be an explicit description of what does and what 
doesn't work.

This way it was almost a week of a me against the computer adventure where I 
lost.
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