I faced the same problem. I searched and I found the solution it works with me now:
- Open Virtual machine setting.
- Go to the processor.
- Check the virtualize Intel VT-x/EPT or AMD-RVI option.
- Click ok and run the Virtual machine, it should work fine with you.
Hope that works with you.
This link HW virtualization in VMware (KVM – Android Studio) helped me to find the solution.
Bad news found in the Using the Emulator section of the official Android developer website:
Not Inside a VM – You cannot run a VM-accelerated emulator inside
another virtual machine, such as a VirtualBox or VMWare-hosted virtual
machine. You must run the emulator directly on your system hardware.
So it seems my best alternative is look for a real device compatible with the Android Studio for running the apps.