How are you making the volume available to the 3rd level?  ATTACH?  LINK?  DEDICATE?
And, respectfully, from my point of view, I wouldn't call it 3rd level.   When I run VM 1st level, I don't
refer to Linux as running 2nd level.  With vm at 1st level  I'd just refer to it as running as a guest.
Are you perhaps thinking you are running it 3rd level but in reality is it a guest to the 2nd level machine?
I know it's a point of view, but I was just checking.

Steve G.

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