How to enable Hyper-V on a Windows VM (that's called Nested Virtualization, right?) running on Virt-Manager?

EDIT

Former title: BSOD - Hypervisor Error & Clock Watchdog Timeout when I try to install WSL in Optional Features

I was trying to install Windows Subsystem On Linux on my Windows 11 VM (cause why not?), but it keeps on BSOD-ing causing primarily Clock Watchdog Timeout & Hypervisor Error.

<domain type="kvm">
  <name>Windows</name>
  <uuid>6440ba51-6199-451e-b6ed-bd5b4e6dc039</uuid>
  <metadata>
    <libosinfo:libosinfo xmlns:libosinfo="http://libosinfo.org/xmlns/libvirt/domain/1.0">
      <libosinfo:os id="http://microsoft.com/win/10"/>
    </libosinfo:libosinfo>
  </metadata>
  <memory unit="KiB">25165824</memory>
  <currentMemory unit="KiB">25165824</currentMemory>
  <vcpu placement="static">12</vcpu>
  <os>
    <type arch="x86_64" machine="pc-q35-6.0">hvm</type>
    <loader readonly="yes" type="pflash">/usr/share/OVMF/OVMF_CODE_4M.ms.fd</loader>
    <nvram>/var/lib/libvirt/qemu/nvram/Windows_VARS.fd</nvram>
  </os>
  <features>
    <acpi/>
    <apic/>
    <hyperv>
      <relaxed state="on"/>
      <vapic state="on"/>
      <spinlocks state="on" retries="8191"/>
      <vendor_id state="on" value="AuthenticAMD"/>
    </hyperv>
    <vmport state="off"/>
  </features>
  <cpu mode="host-passthrough" check="none" migratable="on">
    <topology sockets="1" dies="1" cores="6" threads="2"/>
    <feature policy="disable" name="hypervisor"/>
  </cpu>
  <clock offset="localtime">
    <timer name="rtc" tickpolicy="catchup"/>
    <timer name="pit" tickpolicy="delay"/>
    <timer name="hpet" present="no"/>
    <timer name="hypervclock" present="yes"/>
  </clock>
  <on_poweroff>destroy</on_poweroff>
  <on_reboot>restart</on_reboot>
  <on_crash>destroy</on_crash>
  <pm>
    <suspend-to-mem enabled="no"/>
    <suspend-to-disk enabled="no"/>
  </pm>
  <devices>
    <emulator>/usr/bin/qemu-system-x86_64</emulator>
    <disk type="file" device="disk">
      <driver name="qemu" type="qcow2" discard="unmap"/>
      <source file="/home/DATA/870E2TB/yamiyuki/VMs/Windows.qcow2"/>
      <target dev="sda" bus="sata"/>
      <boot order="2"/>
      <address type="drive" controller="0" bus="0" target="0" unit="0"/>
    </disk>
    <disk type="file" device="cdrom">
      <driver name="qemu" type="raw"/>
      <target dev="sdb" bus="sata"/>
      <readonly/>
      <boot order="1"/>
      <address type="drive" controller="0" bus="0" target="0" unit="1"/>
    </disk>
    <disk type="block" device="disk">
      <driver name="qemu" type="raw" cache="none" io="native" discard="unmap"/>
      <source dev="/dev/disk/by-id/ata-Samsung_SSD_860_QVO_1TB_S4PGNF0M434676E"/>
      <target dev="sdc" bus="sata"/>
      <address type="drive" controller="0" bus="0" target="0" unit="2"/>
    </disk>
    <disk type="block" device="disk">
      <driver name="qemu" type="raw" cache="none" io="native"/>
      <source dev="/dev/disk/by-uuid/222AA05D2AA02FA9"/>
      <target dev="sdd" bus="usb"/>
      <address type="usb" bus="0" port="7"/>
    </disk>
    <controller type="sata" index="0">
      <address type="pci" domain="0x0000" bus="0x00" slot="0x1f" function="0x2"/>
    </controller>
    <controller type="pci" index="0" model="pcie-root"/>
    <controller type="pci" index="1" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="1" port="0x10"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x0" multifunction="on"/>
    </controller>
    <controller type="pci" index="2" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="2" port="0x11"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x1"/>
    </controller>
    <controller type="pci" index="3" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="3" port="0x12"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x2"/>
    </controller>
    <controller type="pci" index="4" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="4" port="0x13"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x3"/>
    </controller>
    <controller type="pci" index="5" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="5" port="0x14"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x4"/>
    </controller>
    <controller type="pci" index="6" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="6" port="0x15"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x5"/>
    </controller>
    <controller type="pci" index="7" model="pcie-to-pci-bridge">
      <model name="pcie-pci-bridge"/>
      <address type="pci" domain="0x0000" bus="0x01" slot="0x00" function="0x0"/>
    </controller>
    <controller type="pci" index="8" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="8" port="0x16"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x6"/>
    </controller>
    <controller type="pci" index="9" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="9" port="0x8"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x01" function="0x0"/>
    </controller>
    <controller type="virtio-serial" index="0">
      <address type="pci" domain="0x0000" bus="0x03" slot="0x00" function="0x0"/>
    </controller>
    <controller type="usb" index="0" modelBSOD - Hypervisor Error & Clock Watchdog Timeout when I try to install WSL in Optional Features="qemu-xhci" ports="15">
      <address type="pci" domain="0x0000" bus="0x02" slot="0x00" function="0x0"/>
    </controller>
    <interface type="network">
      <mac address="52:54:00:4a:a7:c5"/>
      <source network="default"/>
      <model type="e1000e"/>
      <address type="pci" domain="0x0000" bus="0x09" slot="0x00" function="0x0"/>
    </interface>
    <serial type="pty">
      <target type="isa-serial" port="0">
        <model name="isa-serial"/>
      </target>
    </serial>
    <console type="pty">
      <target type="serial" port="0"/>
    </console>
    <channel type="spicevmc">
      <target type="virtio" name="com.redhat.spice.0"/>
      <address type="virtio-serial" controller="0" bus="0" port="2"/>
    </channel>
    <channel type="spiceport">
      <source channel="org.spice-space.webdav.0"/>
      <target type="virtio" name="org.spice-space.webdav.0"/>
      <address type="virtio-serial" controller="0" bus="0" port="1"/>
    </channel>
    <input type="mouse" bus="ps2"/>
    <input type="keyboard" bus="virtio">
      <address type="pci" domain="0x0000" bus="0x08" slot="0x00" function="0x0"/>
    </input>
    <input type="mouse" bus="usb">
      <address type="usb" bus="0" port="1"/>
    </input>
    <input type="keyboard" bus="ps2"/>
    <tpm model="tpm-tis">
      <backend type="emulator" version="2.0"/>
    </tpm>
    <graphics type="spice" autoport="yes">
      <listen type="address"/>
      <image compression="off"/>
    </graphics>
    <sound model="ich9">
      <address type="pci" domain="0x0000" bus="0x00" slot="0x1b" function="0x0"/>
    </sound>
    <audio id="1" type="spice"/>
    <video>
      <model type="none"/>
    </video>
    <hostdev mode="subsystem" type="usb" managed="no">
      <source startupPolicy="optional">
        <vendor id="0x046d"/>
        <product id="0xc541"/>
      </source>
      <address type="usb" bus="0" port="4"/>
    </hostdev>
    <hostdev mode="subsystem" type="usb" managed="no">
      <source startupPolicy="optional">
        <vendor id="0x28da"/>
        <product id="0x3101"/>
      </source>
      <address type="usb" bus="0" port="5"/>
    </hostdev>
    <hostdev mode="subsystem" type="usb" managed="yes">
      <source startupPolicy="optional">
        <vendor id="0x2109"/>
        <product id="0x0817"/>
        <address bus="4" device="2"/>
      </source>
      <address type="usb" bus="0" port="6"/>
    </hostdev>
    <hostdev mode="subsystem" type="pci" managed="yes">
      <source>
        <address domain="0x0000" bus="0x03" slot="0x00" function="0x0"/>
      </source>
      <address type="pci" domain="0x0000" bus="0x06" slot="0x00" function="0x0"/>
    </hostdev>
    <hostdev mode="subsystem" type="pci" managed="yes">
      <source>
        <address domain="0x0000" bus="0x0e" slot="0x00" function="0x0"/>
      </source>
      <address type="pci" domain="0x0000" bus="0x04" slot="0x00" function="0x0"/>
    </hostdev>
    <hostdev mode="subsystem" type="pci" managed="yes">
      <source>
        <address domain="0x0000" bus="0x0e" slot="0x00" function="0x1"/>
      </source>
      <address type="pci" domain="0x0000" bus="0x05" slot="0x00" function="0x0"/>
    </hostdev>
    <redirdev bus="usb" type="spicevmc">
      <address type="usb" bus="0" port="2"/>
    </redirdev>
    <redirdev bus="usb" type="spicevmc">
      <address type="usb" bus="0" port="3"/>
    </redirdev>
    <memballoon model="none"/>
    <shmem name="looking-glass">
      <model type="ivshmem-plain"/>
      <size unit="M">32</size>
      <address type="pci" domain="0x0000" bus="0x07" slot="0x02" function="0x0"/>
    </shmem>
  </devices>
</domain>

Does Hyper-V need to be enabled?