I use a vCenter Server Virtual Appliance to manage the ESXi host that I use for my nested environment. The vCSA allows me to leverage features such as vApps, Cloning, and MAC Learning. I deploy the vCSA on a separate ESXi host where I keep my Domain Controllers and a Windows 10 VM that I use for RDP access however you could install it on the ESXi host that you are using for your nested environment if you have enough resources.
Once the vCSA has been deployed, add your ESXi host.
Next, create a vSphere Distributed Switch named vDS01, then add the ESXi host to the vDS.
Important: Make sure you enable VLAN Trunking on the DPortGroup and set the VLAN trunk range to 0-4094
You will also need to create a vSphere Distributed Port Group named 1611 that you will use for the Cloudbuilder virtual machine.
Important: Make sure you set the VLAN type to VLAN and the VLAN ID to 1611.
