Hi Ronit,
I don't see screenshot in your question. What is the error you are seeing?
I just created Standard_D2s_v3 VM with Standard security using 2022-datacenter-azure-edition-smalldisk image. Installed Hyper-V using Server Manager, restarted, created VM using Hyper-V Manager, and successfully started the nested VM.
Please verify on Overview blade of your VM that it says Security type: Standard. I know you said you already have Standard security, but please double-check Overview blade to make certain.
Please click Accept Answer and upvote if the above was helpful.
Thanks.
-TP