HC is not creating the virtual machine of generation 2 type. I am trying to deploy one and I get an error during the boot up saying the boot device is not available.
Can you tell me if HC supports Type 2 Hyper-V 2012 virtual machines?

You need to upgrade to HC9.17 as Hyper-V Generation2 VMs are now supported with Hosting Controller latest build HC9.17. You may read the release notes for this build 17 by following the URL given below:
http://help.hostingcontro...ageid=hc_release_notes
 
In order to know more about how to upgrade to HC9.17, you can visit the kb article link given as under which contains instructions on how to modify HC9 build on your server:
http://portal.hostingcont...with-latest-build.aspx