Each new VM would get a smaller and smaller amount of resources available to it, and as you nest VMs, things start slowing down due to overhead. Think of a hallway. You have to take messages from one end to the other end for instruction processing. Each further nested VM has a longer and longer hallway.
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If you do this, make sure to have a backup email on a different provider for all of your domain and DNS services in case something goes wrong you can still fix it. I’ve heard horror stories…