The Nested Dynamic Function eXchange flow is essentially a step and repeat through hierarchy, moving the context of static and reconfigurable boundaries with each pass through the Vivado tools. The first pass (configuration) will establish the implementation results of the static design, just as is done for the standard DFX flow. Subsequent runs will establish and implement lower-order RPs, each with its own relative static level above it.
Throughout the flow, the general requirements and recommendations for a standard Dynamic Function eXchange design will still apply. For example, each module set to be reconfigurable must be synthesized out-of-context, each partition must be floor planned, and proper decoupling should be inserted on the static side of all reconfigurable boundaries.
Essentially Nested DFX should be viewed from the context of what is static and reconfigurable at a specific hierarchical boundary. Use the images in Design Structure to describe the Vivado tool flow and design considerations: