I wonder if this is connected to Azure launching OpenShift Virtualization on "Boost" SKUs? There are a lot of VMWare customers going to OpenShift Virt, and apparently the CPU/memory overhead on Azure maxes out around 10% under full load... but then hyper V has been doing a lot of work on it. No idea if nitro includes any of the KVM-on-KVM passthrough of full KVM, to give it an edge here.
Azure has had nested virt for a while - maybe it’s related to OpenShift but you could run OpenShift on Azure for some time. I used to run HyperV in Azure on certain SKUs
OpenShift Virtualization on AWS, even as a managed service ("ROSA Virtualization"), has been available for a while on bare metal. Theoretically this enables ROSA Virtualization on EC2, in case you had valid reasons for such a thing.