I am green at using Linux, it is supposed to be my linux distro exclusively for Ruby(on Rails) development. I suppose it could be that elementary is BIOS based and Windows 10 is UEFI based. How do I solve this problem?
Linux did not work in Hyper V for UEFI installations until very recently. You should find that elementary OS Freya works with legacy mode enabled, or that Loki works as intended.
Yes it can work with gen 2. Before starting VM go into settings -> security. Disable secure boot and save it. Start your VM and go install.
When creating the VM you will be asked to pick the Generation.
Generation 1 will work perfectly.
Generation 2 will work IF after you have created the VM using the wizard, you go into the settings of the virtual machine. Change the Security for Microsoft UEFI Certificate Authority
However, you will be limited to a screen resolution under 1920×1080. If it's not a problem for you then great! If you would like a bigger resolution you will need to install XRDP.
with elementary OS 5 Juno
Yes, but only with Generation 1 VMs, configurable at the time of VM creation. There is no sound, and no video acceleration will mean the system will be sluggish.