Hello @ranujain is your Nutanix cloud running AHV or ESXI?
If you are using AHV as your underlying hypervisor, I recommend using the QCOW2 type for your virtual image type as the VMDK will need to be converted into QCOW2 prior to deploying it to AHV.
The image will need to have the VirtIO drivers installed, for Linux workloads we recommend installing cloud-init and for Windows we recommend running a Sysprep with the generalize option after the operating system has been updated and then converted to a template.