I would like to know the answer to this question as well. Is there, or will there in the future be support for "nested virtualization" for M1 Pro/Max under Parallels Desktop?
Same here! I cannot seem to find if the M1 Pro/Max processors would allow this nested virtualization support (opposed to the M1), so curious to find out.
I do not imagine M1 Pro/Max will change anything in that way. Parallels uses the Apple Hypervisor framework I believe, which would not change based on the new processors. Not sure if the apple hypervisor framework supports nested or not.
I faced the same issue and found that nested virtualization is not yet supported in Apple's Hypervisor Framework. But the support could be added in the future for M1 as well.
Here're the official support articles, which one can subscribe to get updates:
