Honestly asking, in which cases nested virtualization is useful?
Nested virtualization can be very handy in both the lab and in production. In the lab, you can try out a new hosting platform by running one atop the other. IE: Proxmox on VMWare, Hyper-V on KVM. This lets you try things out without needing fresh bare metal hardware.
In prod, let's say you run workloads in Firecracker VMs. You have plenty of headroom on your existing hardware. Nested virtualization would allow you to set up Firecracker hosts on your existing hardware.
One example: when learning Proxmox itself. I was able to set up a multi-node cluster with more complicated networking than I was normally comfortable with and experiment with failures of all sorts (killing a node, disabling NICs, etc.) without needing more hardware or affecting my existing things.
Outside of learning and testing I am not sure of what uses there might be but I'm curious to know if there are.
WSL2 in a virtual desktop environment.
We run Proxmox VMs that are running Hashicorp's Nomad orchestration at $DAYJOB. The Nomad clients are then turning around and running the docker containers (Proxmox -> Nomad VM -> Docker). For us it's easier to manage and segregate duties on the initial metal this way.