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I tried using nested styles but it wouldn't work. Is it because it is a section marker?


This is on a master page. I'd like to change the section marker to look like the one below (just a text on the screencap, that's why I was able to change the font for the first letter).
Thanks in advance!
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Unfortunately, yes. At the time of writing this answer, GREP styles won't work on text variables as they are only seen as one character, rather than their true text. It also prevents a text variable going over two lines.
It's a shame because it would allow an alternative technique of using a single master page to make moving side tabs plausible: https://indesignsecrets.com/moving-side-tabs-using-only-one-master-page-and-chartwell-bars.php
The article shows the issue in the story editor illustration in the last part of the article.
However, there is a movement to change this over on the uservoice page: Grep style formatting for variables – Adobe InDesign Feedback
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