Windows POSReady 2009 Hyper-V'd on Windows Server 2016 (Azure VM) cannot connect to Internet

I am running Windows POSReady 2009 inside Windows Server 2016 that is residing on Azure VM. I have installed IIS (components from Windows Server 2012 missing on 2016 that enable 2016's Hyper-V to conform to past Windows releases).

After being booted, Windows POSReady 2009 cannot establish network connection (network card is detected, but connection is in a limited or no connectivity state with an IP address but no DNS/gateway/DHCP settings and some packets sent but none received).

How do I restore Internet connection in this setup? What additional information would be needed?

This is not a problem with underlying system image. The same Windows POSReady 2009 image connects correctly if hyper-v'd on Windows 10 Professional and after the following workaround for "Legacy network adapter" is applied.

Solution 1:

This sounds like nested virtualization. Is that the case?

If so, you probably need to enable MAC address spoofing in the advanced features of the network adapter of the vm in Hyper-V.