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Is there a way to run Nested VMware Virtual Machines on Azure DV3/Ev3 Virtual Machines? I got error message: VMware Workstation and Hyper-V are not compatible. Remove the Hyper-V role from the system before running VMware Workstation.

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No you cannot do this. Nested Virtualization in Azure only supports using Hyper-V. Any other virtualization providers will not work.

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There is also a collaboration between Microsoft and Cloudsimple to run VMWare workloads on Azure. https://azure.microsoft.com/en-us/services/azure-vmware-cloudsimple/

I have never tried it though so can’t say if it works good or not.

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