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Doesn't seem like it

Error: admission webhook "virtualmachine-validator.kubevirt.io" denied the request: spec.template.spec.domain.machine.type is not supported: host (allowed values: [q35 pc-q35* pc pc-i440fx*])

I didn't think I had to do anything to get nested virtualization. I installed harvester on a physical system and then installed harvester under that as a test of an installation script and believe I was able to spin up and run a VM on the nested harvester instance.

Yeah that's correct, for some reason the iso wasn't loading kvm had to do manual modprobe but I also unpatched kubevirt