AZ-104 Microsoft Azure Administrator Questions and Answers

Scenario: Create a workflow to send an email message when the settings of VM4 are modified.

You can start an automated logic app workflow when specific events happen in Azure resources or third-party resources. These resources can publish those events to an Azure event grid. In turn, the event grid pushes those events to subscribers that have queues, webhooks, or event hubs as endpoints. As a subscriber, your logic app can wait for those events from the event grid before running automated workflows to perform tasks - without you writing any code.

Technically, The finance department needs to migrate their users from AD to AAD using AADC based on the finance OU, and need to enforce MFA use. This is conditional access policy. Employees also often get promotions and/or join other departments and when that occurs, the user ' s OU attribute will change when the admin puts the user in a new OU, and the dynamic group conditional access exception (OU= [Department Name Value]) will move the user to the appropriate dynamic group on next AADC delta sync.

https://docs.microsoft.com/en-us/azure/active-directory/enterprise-users/groups-dynamic-membership

https://docs.microsoft.com/en-us/azure/active-directory/conditional-access/overview

https://docs.microsoft.com/en-us/azure/active-directory/authentication/howto-mfa-userstates

Box 1: Create a virtual network gateway and a local network gateway.

Azure VPN gateway. The VPN gateway service enables you to connect the VNet to the on-premises network through a VPN appliance. For more information, see Connect an on-premises network to a Microsoft Azure virtual network. The VPN gateway includes the following elements:

Virtual network gateway. A resource that provides a virtual VPN appliance for the VNet. It is responsible for routing traffic from the on-premises network to the VNet.

Local network gateway. An abstraction of the on-premises VPN appliance. Network traffic from the cloud application to the on-premises network is routed through this gateway.

Connection. The connection has properties that specify the connection type (IPSec) and the key shared with the on-premises VPN appliance to encrypt traffic.

Gateway subnet. The virtual network gateway is held in its own subnet, which is subject to various requirements, described in the Recommendations section below.

Box 2: Configure a site-to-site VPN connection

On premises create a site-to-site connection for the virtual network gateway and the local network gateway.

Scenario: Connect the New York office to VNet1 over the Internet by using an encrypted connection.

To enable communication between virtual machines (VMs) located in different virtual networks (VNets) in Azure, the most efficient and recommended approach—according to Microsoft Azure Administrator documentation—is to use VNet peering.

1. Background and Scenario Analysis

From the case study:

VM1 and VM4 are located in different VNets (VNET1 and VNET3).

The requirement is to ensure that VM1 can communicate with VM4.

The solution must minimize administrative effort and cost.

2. Microsoft Documentation Insight: VNet Peering

According to Microsoft Learn: “Virtual network peering”:

“Virtual network peering seamlessly connects two Azure virtual networks. The virtual networks appear as one for connectivity purposes. Traffic between peered virtual networks uses private IP addresses, as if they were part of the same network, and the traffic stays entirely on the Microsoft backbone network.”

Key characteristics of VNet peering:

Enables private IP connectivity between resources across peered VNets.

No need to deploy or maintain gateways (unlike VPN gateways).

Provides low latency and high bandwidth.

Supports transitive routing through additional configurations.

Minimal administrative overhead — peering can be created with just a few clicks or PowerShell/CLI commands.

3. Why the Other Options Are Incorrect

A. Create a user-defined route (UDR) from VNET1 to VNET3.

❌ A UDR alone cannot enable connectivity between VNets unless a gateway or peering already exists. Without a connection path, a route has no effect.

B. Assign VM4 an IP address of 10.0.1.5/24.

❌ This would attempt to place VM4 in the same subnet as VM1, but cross-VNet subnet IP assignment is not possible in Azure. Each VNet has its own isolated address space.

D. Create an NSG and associate it with VM1 and VM4.

❌ Network Security Groups control traffic filtering within or between existing network connections. They do not create connectivity between isolated VNets.

4. Why Peering Is the Correct and Simplest Solution

Establishing VNet peering between VNET1 and VNET3 will:

Instantly enable bidirectional private IP communication between VM1 and VM4.

Minimize administrative effort (no gateways, routing tables, or IP reconfiguration).

Maintain security and performance through Microsoft’s internal backbone.

Avoid additional costs compared to deploying VPN gateways.

5. Implementation Summary

Steps to configure:

In the Azure Portal, go to VNET1 → Peerings → Add.

Choose VNET3 as the peer virtual network.

Enable Allow virtual network access in both directions.

Once completed, both VMs (VM1 and VM4) will communicate using their private IPs.

Final Verified Answer: ✅ C. Establish peering between VNET1 and VNET3

References (Microsoft Official Documentation):

Microsoft Learn — Virtual network peering overview

Microsoft Learn — Create, change, or delete a virtual network peering

Microsoft Learn — Azure virtual network connectivity options and recommendations

A Recovery Services vault is a logical container that stores the backup data for each protected resource, such as Azure VMs. When the backup job for a protected resource runs, it creates a recovery point inside the Recovery Services vault.

Scenario:

There are three application tiers, each with five virtual machines.

Move all the virtual machines for App1 to Azure.

Ensure that all the virtual machines for App1 are protected by backups.

In this scenario, App1 consists of three distinct tiers — web front end, processing middle tier, and SQL database — each containing five virtual machines. The technical requirement specifies that the company must minimize the number of open ports between the App1 tiers, move all tiers of App1 to Azure, and ensure that all VMs are protected by backups.

According to Microsoft Azure architecture best practices for multi-tier applications (from Azure Architecture Center and the Azure Administrator curriculum), the optimal design involves:

Deploying all tiers of App1 into a single virtual network (VNet).

This allows all components of the application to communicate securely using private IP addresses.

Keeping all tiers within a single VNet simplifies management, security, and monitoring while supporting Network Security Groups (NSGs) for inter-tier traffic control.

Microsoft Documentation Extract:

“Use a single virtual network to host multi-tier applications. Divide the virtual network into multiple subnets, each representing a tier, and use network security groups (NSGs) to control traffic flow between tiers.”

(Source: Microsoft Learn – Design and implement virtual networks in Azure)

Creating separate subnets for each application tier (3 total).

Subnet 1: Web tier (internet-facing, HTTPS traffic)

Subnet 2: Application/Processing tier (internal communication only)

Subnet 3: Database tier (private, no internet access)

Using NSGs, administrators can explicitly allow or deny traffic between subnets, thus minimizing open ports between tiers and meeting the security requirement.

Microsoft Documentation Extract:

“Subnets provide isolation and segmentation within a virtual network. Each tier of an application should be deployed in its own subnet to apply network security policies and control exposure.”

(Source: Microsoft Learn – Azure virtual network design best practices)

Backups and Storage Requirements:

All VMs can use Azure Backup integrated with Recovery Services Vaults, which supports VM-level backup in a single VNet environment.

The blueprint files are stored in Azure Blob Storage with the archive tier, ensuring compliance with the storage and access control requirements.

By using one virtual network and three subnets, Contoso ensures efficient management, minimized administrative overhead, secure isolation of application tiers, and full compliance with Azure governance and security recommendations.

✅ Final Verified Answer:

Number of virtual networks: 1

Number of subnets: 3

Statement 1: Yes

Contoso is moving the existing product blueprint files to Azure Blob storage which will ensure that the blueprint files are stored in the archive storage tier.

Use unmanaged standard storage for the hard disks of the virtual machines. We use Page Blobs for these.

Statement 2: No

Azure Table storage stores large amounts of structured data. The service is a NoSQL datastore which accepts authenticated calls from inside and outside the Azure cloud. Azure tables are ideal for storing structured, non-relational data. Common uses of Table storage include:

1. Storing TBs of structured data capable of serving web scale applications

2. Storing datasets that don ' t require complex joins, foreign keys, or stored procedures and can be denormalized for fast access

3. Quickly querying data using a clustered index

4. Accessing data using the OData protocol and LINQ queries with WCF Data Service .NET Libraries

Statement 3: No

File Storage can be used if your business use case needs to deal mostly with standard File extensions like *.docx, *.png and *.bak then you should probably go with this storage option.

You can opt in and configure additional recipients to receive your Azure invoice in an email. This feature may not be available for certain subscriptions such as support offers, Enterprise Agreements, or Azure in Open.

Select your subscription from the Subscriptions page. Opt-in for each subscription you own. Click Invoices then Email my invoice.

Click Opt in and accept the terms.

Scenario: During the testing phase, auditors in the finance department must be able to review all Azure costs from the past week.

In this scenario, Contoso Ltd. must designate a new user named Admin1 as the service administrator of the Azure subscription and ensure that Admin1 receives email alerts about service outages.

In Azure, there are three classic administrative roles associated with subscriptions:

Account Administrator – The individual who created the subscription and manages billing.

Service Administrator – The primary contact responsible for managing services and resources in the subscription.

Co-Administrator – Has the same management privileges as the Service Administrator but cannot change subscription associations.

According to Microsoft Azure Administrator documentation, to change the Service Administrator, you must perform the following steps:

In the Azure portal, navigate to Subscriptions.

Select the specific subscription.

Under Settings, choose Properties.

In the Service Administrator field, update the name and email address to that of the new administrator (in this case, Admin1).

This modification ensures that Admin1 becomes the Service Administrator, and Azure will automatically send service-related notifications and outage alerts to that user’s registered email address, as defined by Microsoft’s subscription notification process.

Option B (IAM settings) is used for Role-Based Access Control (RBAC) and assigning Azure Resource Manager roles such as Owner, Contributor, or Reader. However, RBAC roles do not change the Service Administrator at the subscription level — that’s only done through the Properties blade.

Options C (AAD Properties) and D (AAD Groups) are unrelated to subscription-level administrative settings.

Therefore, the verified and Microsoft-documented answer is:

✅ A. From the Subscriptions blade, select the subscription, and then modify the Properties.

Final Verified Answer: ✅ A. From the Subscriptions blade, select the subscription, and then modify the Properties.

IdFix is used to perform discovery and remediation of identity objects and their attributes in an on-premises Active Directory environment in preparation for migration to Azure Active Directory. IdFix is intended for the Active Directory administrators responsible for directory synchronization with Azure Active Directory.

Scenario: Active Directory Issue

Several users in humongousinsurance.com have UPNs that contain special characters.

You suspect that some of the characters are unsupported in Azure AD.

Once the VNets are peered, all resources on one VNet can communicate with resources on the other peered VNets. You plan to enable peering between Paris-VNet and AllOffices-VNet. Therefore VMs on Subnet1, which is on Paris-VNet and VMs on Subnet3, which is on AllOffices-VNet will be able to connect to each other.

All Azure resources connected to a VNet have outbound connectivity to the Internet by default. Therefore VMs on ClientSubnet, which is on ClientResources-VNet will have access to the Internet; and VMs on Subnet3 and Subnet4, which are on AllOffices-VNet will have access to the Internet.

Scenario: Licensing Issue

1. You attempt to assign a license in Azure to several users and receive the following error message: " Licenses not assigned. License agreement failed for one user. "

2. You verify that the Azure subscription has the available licenses.

Solution:

License cannot be assigned to a user without a usage location specified.

Some Microsoft services aren ' t available in all locations because of local laws and regulations. Before you can assign a license to a user, you must specify the Usage location property for the user. You can specify the location under the User  >  Profile  >  Settings section in the Azure portal.

Statement 1: Yes

All client computers in the Paris office will be joined to an Azure AD domain.

A virtual network named Paris-VNet that will contain two subnets named Subnet1 and Subnet2.

Microsoft Windows Server Active Directory domains, can resolve DNS names between virtual networks. Automatic registration of virtual machines from a virtual network that ' s linked to a private zone with auto-registration enabled. Forward DNS resolution is supported across virtual networks that are linked to the private zone.

Statement 2: Yes

A virtual network named ClientResources-VNet that will contain one subnet named ClientSubnet You plan to create a private DNS zone named humongousinsurance.local and set the registration network to the ClientResources-VNet virtual network.

As this is a registration network so this will work.

Statement 3: No

Only VMs in the registration network, here the ClientResources-VNet, will be able to register hostname records. Since Subnet4 not connected to Client Resources Network thus not able to register its hostname with humongoinsurance.local

D: Seamless SSO works with any method of cloud authentication - Password Hash Synchronization or Pass-through Authentication, and can be enabled via Azure AD Connect.

B: You can gradually roll out Seamless SSO to your users. You start by adding the following Azure AD URL to all or selected users ' Intranet zone settings by using Group Policy in Active Directory: https://autologon.microsoftazuread-sso.com

Every Azure AD directory comes with an initial domain name in the form of domainname.onmicrosoft.com. The initial domain name cannot be changed or deleted, but you can add your corporate domain name to Azure AD as well. For example, your organization probably has other domain names used to do business and users who sign in using your corporate domain name. Adding custom domain names to Azure AD allows you to assign user names in the directory that are familiar to your users, such as ‘alice@contoso.com.’ instead of ' alice@domain name.onmicrosoft.com ' .

Scenario:

Network Infrastructure: Each office has a local data center that contains all the servers for that office. Each office has a dedicated connection to the Internet.

Humongous Insurance has a single-domain Active Directory forest named humongousinsurance.com

Planned Azure AD Infrastructure: The on-premises Active Directory domain will be synchronized to Azure AD.

Cost analysis: Correct Option

In cost analysis blade of Azure, you can see all the detail for custom time span. You can use this to determine expenditure of last few day, weeks, and month. Below options are available in Cost analysis blade for filtering information by time span:  last 7 days, last 30 days, and custom date range. Choosing the first option (last 7 days) auditors can view the costs by time span.

Cost analysis shows data for the current month by default. Use the date selector to switch to common date ranges quickly. Examples include the last seven days, the last month, the current year, or a custom date range. Pay-as-you-go subscriptions also include date ranges based on your billing period, which isn ' t bound to the calendar month, like the current billing period or last invoice. Use the  < PREVIOUS and NEXT >  links at the top of the menu to jump to the previous or next period, respectively. For example,  < PREVIOUS will switch from the Last 7 days to 8-14 days ago or 15-21 days ago.

Invoice: Incorrect Option

Invoices can only be used for past billing periods not for current billing period, i.e. if your requirement is to know the last week ' s cost then that also not filled by invoices because Azure  generates invoice at the end of the month. Even though Invoices have custom timespan, but when you put in dates for a week, the pane would be empty. Below is from Microsoft document:

Resource Provider: Incorrect Option

When deploying resources, you frequently need to retrieve information about the resource providers and types. For example, if you want to store keys and secrets, you work with the Microsoft.KeyVault resource provider. This resource provider offers a resource type called vaults for creating the key vault. This is not useful for reviewing all Azure costs from the past week which is required for audit.

Payment method: Incorrect Option

Payment methods is not useful for reviewing all Azure costs from the past week which is required for audit.

Every Azure AD directory comes with an initial domain name in the form of domainname.onmicrosoft.com.

The initial domain name cannot be changed or deleted, but you can add your corporate domain name to Azure AD as well. For example, your organization probably has other domain names used to do business and users who sign in using your corporate domain name. Adding custom domain names to Azure AD allows you to assign user names in the directory that are familiar to your users, such as ‘alice@contoso.com.’ instead of ' alice@domain name.onmicrosoft.com ' .

Scenario:

Network Infrastructure: Each office has a local data center that contains all the servers for that office. Each office has a dedicated connection to the Internet.

Humongous Insurance has a single-domain Active Directory forest named humongousinsurance.com

Planned Azure AD Infrastructure: The on-premises Active Directory domain will be synchronized to Azure AD.

https://learn.microsoft.com/en-us/azure/azure-monitor/agents/agents-overview Azure Monitor Agent (AMA) collects monitoring data from the guest operating system of Azure and hybrid virtual machines and delivers it to Azure Monitor for use by features, insights, and other services, such as Microsoft Sentinel and Microsoft Defender for Cloud. Azure Monitor Agent replaces all of Azure Monitor ' s legacy monitoring agents.

Explanation

Scenario:

1. Web administrators will deploy Azure web apps for the marketing department.

2. Each web app will be added to a separate resource group.

3. The initial configuration of the web apps will be identical.

4. The web administrators have permission to deploy web apps to resource groups.

Steps:

1 -- > Create a resource group, and then deploy a web app to the resource group.

2 -- > From the Automation script blade of the resource group , click Add to Library.

3 -- > From the Templates service, select the template, and then share the template to the web administrators .

Azure role-based access control (Azure RBAC) for Azure file shares requires identity-based authentication integration. According to the Microsoft Azure Administrator documentation, this feature is only supported for StorageV2 (general purpose v2) and FileStorage account types.

In this scenario:

You are required to grant Group4 read-only access using Azure RBAC on Azure file shares.

The technical requirement specifies:

“Whenever possible, grant Group4 Azure RBAC read-only permissions to the Azure file shares.”

From the case study data:

Storage Account

Kind

Identity-based Access

storage1

Storage (general purpose v1)

Azure AD DS

storage2

StorageV2

Disabled

storage3

BlobStorage

N/A

storage4

FileStorage

Azure AD DS

The Storage (general purpose v1) type (storage1) does not support Azure AD or Azure RBAC integration for file shares. Microsoft documentation clearly states that “StorageV1 accounts must be upgraded to StorageV2 to support Azure AD authentication and RBAC role assignments.”

Meanwhile, FileStorage (storage4) already supports Azure AD Domain Services (Azure AD DS) and RBAC role assignment; hence no further modification is required there. However, to make storage1 compatible, it must be converted from StorageV1 to StorageV2.

Once converted to StorageV2, you can then:

Enable identity-based access for Azure file shares.

Assign Azure RBAC roles (e.g., Storage File Data Reader) to Group4.

Microsoft-Documented Requirements Summary:

Supported Account Types: StorageV2 or FileStorage

Unsupported: StorageV1 and BlobStorage

Required RBAC Roles for Read-Only Access:

Storage File Data Reader (or custom read-only role)

Thus, to meet the organization’s requirement to provide Azure RBAC read-only permissions, you must change the account type of storage1 to StorageV2, ensuring both storage1 and storage4 can be managed with Azure RBAC.

The question asks which storage account type should be created for storage5 and which existing storage account should be configured as the destination for replication — while supporting the planned changes.

Step 1: Planned Change Requirement

From the case study:

“Create a storage account named storage5 and configure storage replication for the Blob service.”

This indicates that storage5 will act as a secondary (destination) account to receive geo-replicated blobs (as part of RA-GRS or GRS replication configuration).

Therefore, the new storage5 must support Blob service replication features.

Step 2: Determining Correct Account Type

According to Microsoft Azure Administrator Documentation (Microsoft Learn: “Types of storage accounts”):

Account Type

Blob Support

File Share Support

Recommended Use

Storage (general purpose v1)

✅ Basic blob

Limited

Legacy use, lacks advanced features

StorageV2 (general purpose v2)

✅ Full blob, file, queue, table support

✅

Supports replication (GRS, RA-GRS, ZRS) and access tiers

BlobStorage

✅ Blob only

❌ No file shares

Used only for block and append blobs

BlockBlobStorage

✅ Blob only (premium tier)

❌ No file shares

High-performance workloads only

Therefore, the correct type for storage5 must be StorageV2, as it supports both:

Blob service replication (GRS, RA-GRS, ZRS, LRS)

All tiers (Hot, Cool, Archive)

This meets the planned change and ensures the account supports replication for Blob service.

Step 3: Determining the Correct Destination Storage Account

The question also requires identifying which existing storage account should act as the destination for replication configuration.

In Azure, Blob service replication (for example, geo-redundant replication or object replication) requires:

Both storage accounts to be StorageV2.

Both to be in the same region pair and have object replication enabled.

Looking at the table:

Storage Account

Kind

Location

File Share

Identity-based Access

storage1

Storage (general purpose v1)

West US

sharea

Azure AD DS

storage2

StorageV2 (general purpose v2)

East US

shareb, sharec

Disabled

storage3

BlobStorage

East US 2

N/A

N/A

storage4

FileStorage

Central US

shared

Azure AD DS

Only storage2 meets all of the following conditions:

✅ Type: StorageV2

✅ Region: East US (a valid replication pair for East US 2 or secondary region)

✅ Blob Service supported

Hence, storage2 is the correct destination storage account to configure for replication from storage5.

Step 4: Supporting Microsoft Azure Documentation Extracts

From Microsoft Learn – Azure Storage account overview:

“General-purpose v2 accounts support all Azure Storage features, including blob, file, queue, and table storage. They are recommended for most scenarios.”

“Object replication requires both source and destination accounts to be of the same type (StorageV2) and in regions that are geo-paired.”

“Blob and StorageV2 accounts support replication options such as LRS, ZRS, GRS, and RA-GRS.”

In Azure, Load Balancers distribute network traffic across multiple virtual machines (VMs) to ensure high availability and reliability. To add virtual machines to the backend pool of an Azure Load Balancer, the following key conditions must be met according to the Microsoft Azure Administrator documentation:

All VMs in the backend pool must be connected to the same virtual network (VNet) as the Load Balancer.

The Load Balancer (in this case, LB1) is configured for internal load balancing on VNET1/Subnet1 as per the technical requirements of the case study.

The backend pool can include network interfaces (NICs) from VMs within the same region and VNet.

Step-by-step analysis:

From the case study data:

VM

Location

Connected to

IP Address

VM1

West US

VNET1/Subnet1

10.0.1.4

VM2

West US

VNET1/Subnet2

10.0.2.4

LB1

Internal Basic Load Balancer

Connected to VNET1/Subnet1

—

Observation:

VM1 is already connected to VNET1/Subnet1, where the internal Load Balancer LB1 is also deployed.

VM2, however, is connected to VNET1/Subnet2, which is a different subnet within the same virtual network.

According to Microsoft Learn (“Configure backend pools in Azure Load Balancer”):

“All network interfaces in the backend pool must be within the same virtual network as the load balancer. You cannot add VMs connected to different VNets or subnets not associated with the load balancer’s front-end configuration.”

Therefore, before you can add VM2 to the backend pool, you must ensure that its network interface is attached to VNET1/Subnet1, the same subnet used by LB1.

Only after this step will both VMs (VM1 and VM2) be eligible for inclusion in LB1’s backend pool.

Incorrect Option Analysis:

A. Create a new NSG and associate the NSG to VNET1/Subnet1.

❌ Not required. Network Security Groups control traffic filtering, not backend pool configuration.

C. Redeploy VM1 and VM2 to the same availability zone.

❌ Availability Zones only matter for redundancy and failover, not for backend pool eligibility in a basic internal load balancer.

D. Redeploy VM1 and VM2 to the same availability set.

❌ Basic Load Balancers can distribute traffic across VMs in the same availability set, but both VMs must already reside in the same VNet/Subnet first.

Final Verified Answer:

✅ B. Connect VM2 to VNET1/Subnet1

Reference (Microsoft Official Documentation):

Microsoft Learn: Configure the backend pool for Azure Load Balancer

Microsoft Learn: Azure Load Balancer overview

Microsoft Learn: Create and configure an internal load balancer

Microsoft Learn: Virtual network and subnet requirements for load balancing

1️⃣ Create a Log Analytics workspace.

2️⃣ Collect Windows performance counters from the Log Analytics agents.

3️⃣ Create an alert rule.

The question states:

“You need to configure the alerts for VM1 and VM2 to meet the technical requirements.”

The technical requirement from the case study specifies:

“Trigger an alert if VM1 or VM2 has less than 20 GB of free space on volume C.”

This requirement involves monitoring performance metrics (disk space) and generating alerts based on those metrics. According to Microsoft Azure monitoring and management documentation, the process to configure such alerts involves using Azure Monitor and Log Analytics.

Step-by-Step Verified Solution:

Step 1: Create a Log Analytics workspace

A Log Analytics workspace is required to store and analyze logs and performance data collected from virtual machines.

Azure Monitor uses this workspace as the central repository for performance counters, events, and logs from connected agents.

From the Microsoft Documentation:

“Before you can collect and query data from virtual machines, you must create a Log Analytics workspace in your subscription.”

(Source: Azure Monitor and Log Analytics Guide)

Step 2: Collect Windows performance counters from the Log Analytics agents

After creating the workspace, you must connect VM1 and VM2 to the workspace and configure the Windows performance counters that you want to monitor.

In this case, you would collect the LogicalDisk(%) Free Space counter for C: drive.

Azure Monitor agent or Log Analytics agent collects these metrics and sends them to the workspace for analysis.

“To monitor system performance, configure the agent to collect performance counters such as available memory or free disk space.”

(Source: Azure Monitor Performance Counters Documentation)

Step 3: Create an alert rule

Once performance data is being collected, you can create an alert rule in Azure Monitor based on a Kusto query or metric threshold.

You would define a condition such as:

LogicalDisk | where FreeSpaceMB < 20480

and configure it to trigger an alert when free space on volume C drops below 20 GB.

This alert can notify via email, action group, or automation runbook.

“Alerts in Azure Monitor proactively notify you when important conditions are found in your monitoring data. Alerts can trigger automated actions or notifications.”

(Source: Azure Monitor Alerts Overview)

Incorrect Options (Eliminated):

Configure the Diagnostic settings:

Used for collecting activity logs or resource logs, not performance counters from VMs.

Create an Azure SQL database:

Not relevant to the scenario of monitoring disk space.

AzCopy is a command-line utility provided by Microsoft Azure for transferring data to and from Azure Storage accounts with high performance and reliability. It is particularly designed to support bulk data migration and synchronization for Azure storage services.

According to the Microsoft Azure Administrator documentation (AzCopy v10 and later), the tool supports copying data to and from only two Azure storage services:

Azure Blob storage — including block blobs, append blobs, and page blobs.

Azure Files (File shares) — including directories and individual files.

The Table and Queue storage services are not supported by AzCopy, as these services handle structured and message-based data rather than binary or file data.

From the official Azure Administrator Study Guide and Microsoft Docs:

“AzCopy is a command-line tool that moves data into and out of Azure Storage accounts. You can use AzCopy with Blob storage or Azure Files. AzCopy doesn’t support copying data to or from Table storage or Queue storage.”

(Source: Microsoft Learn – “Transfer data with AzCopy and Blob storage” and “Transfer data with AzCopy and Azure Files”)

" Encryption scopes enable you to manage encryption at the level of an individual blob or container. " https://learn.microsoft.com/en-us/azure/storage/blobs/encryption-scope-manage?tabs=portal

You must identify the correct storage account for flow logging of IP traffic from VM5 that satisfies the retention requirement of eight months.

Step 1 — Review the Requirements

Flow logs are stored in a StorageV2 (general purpose v2) account.

The selected storage account must support Network Watcher flow logs.

Data must be retained for eight months (≈ 240 days).

Step 2 — Evaluate Each Storage Account

Storage Account

Kind

Region

Remarks

storage1

Storage (general purpose v1)

West US

Does not support flow logs (deprecated type).

storage2

StorageV2 (general purpose v2)

East US

Fully supports flow logs and lifecycle management.

storage3

BlobStorage

East US 2

Not suitable — supports blobs only, not log structure or lifecycle retention.

storage4

FileStorage

Central US

File-only — cannot store flow logs.

Step 3 — Compliance with Flow Log Retention

Flow logs for Network Watcher NSG flow logging are supported only by StorageV2 accounts. You can use Azure Storage lifecycle management to automatically delete logs after a set period — such as 240 days (8 months) — to comply with retention requirements.

Official Microsoft Note:

“Network security group (NSG) flow logs are stored in Azure StorageV2 (General Purpose v2) accounts, which support lifecycle management for log retention.” — Azure Network Watcher documentation.

Conclusion

storage2 is the only StorageV2 account.

It’s located in East US, matching VM5’s region (East US) — this satisfies performance and compliance requirements.

✅ Yes, Yes, No

To meet the technical requirement that User1 can create initiative definitions and User4 can assign initiatives to RG2, we must understand how Azure Policy roles operate according to Microsoft Azure documentation and AZ-104 study guides.

Azure Policy uses role-based access control (RBAC) to determine who can create, manage, and assign policies or initiatives (policy sets). The key roles relevant to this task are:

Resource Policy Contributor – Allows users to create, edit, and delete policy definitions and initiative definitions, but does not allow assignment of policies or initiatives. This role is required for users who will design or build the policy logic (definitions).

Therefore, User1, who needs to create initiative definitions, must have the Resource Policy Contributor role.

Scope: Subscription (Sub1) – because initiatives are created at subscription or management group level.

Contributor – Provides full access to manage resources, except granting permissions. Contributors can assign existing policies or initiatives to resource groups or subscriptions if they have sufficient permissions.

Therefore, User4, who needs to assign initiatives to RG2, must be assigned the Contributor role at the RG2 scope.

Other roles:

Security Admin is related to Microsoft Defender for Cloud security settings, not policy creation.

Resource Policy Contributor for RG2 would not meet the requirement because creating definitions typically requires subscription-level access.

According to Microsoft Docs (“Azure built-in roles for Policy”):

“The Resource Policy Contributor role allows users to create, edit, and delete Azure policy and initiative definitions. To assign policies or initiatives, users need the Contributor or Owner role at the appropriate scope.”

Hence, the configuration should be:

User1: Resource Policy Contributor for Sub1

User4: Contributor for RG2

In Azure, load balancer configurations must have consistent SKU compatibility between the load balancer and its associated backend pool members. The Standard SKU Load Balancer requires that all backend pool members — such as virtual machines, network interfaces, or virtual machine scale sets — use Standard SKU public IPs or Standard SKU configurations if external, and proper network interface associations if internal.

However, in this question:

LB1 is an internal Standard SKU load balancer.

Internal load balancers do not require or support public IP addresses on the backend virtual machines.

Backend pool members of an internal load balancer are identified by private IP addresses from the virtual network, not public IPs.

According to Microsoft Azure Load Balancer documentation (Azure Administrator Guide, “Configure Standard Load Balancer”),

“For a Standard internal load balancer, the backend pool can contain only virtual machines or NICs that are in the same virtual network as the load balancer. Public IP addresses are not required and not supported for backend members.”

To correctly meet the goal, the proper solution is to:

Ensure that VM1 and VM2 are deployed within the same virtual network (VNET1) and subnet as LB1.

Ensure that the NICs of both VMs are configured with Standard SKU (if public IPs are attached elsewhere) to match the load balancer SKU.

Add these NICs or virtual machines directly to the backend pool of LB1.

Creating and assigning Standard SKU public IP addresses to each VM is unnecessary and does not help connect them to the internal load balancer. In fact, it contradicts Azure’s design for internal load balancers, which only route traffic using private addresses within the virtual network scope.

Therefore, the given solution does not meet the goal.

To allow VNet1 (192.168.8.0/24) and VNet2 (192.168.9.0/24) to communicate, the lowest-overhead Azure-native option is virtual network peering. Azure documentation describes VNet peering as a way to connect two VNets so that resources can communicate using private IP addresses as if they were on the same network. Because the address spaces do not overlap, peering is supported and does not require deploying extra appliances. This also minimizes administrative effort compared to routing through gateways or NVAs.

For on-premises to Azure connectivity while minimizing cost, the appropriate service is an Azure VPN Gateway with a site-to-site (S2S) VPN. Azure’s guidance for hybrid connectivity positions VPN Gateway as the cost-effective encrypted tunnel over the public internet for connecting on-premises networks to Azure VNets. The alternative shown, ExpressRoute, provides private dedicated connectivity but is designed for higher throughput/enterprise requirements and generally increases cost due to circuit provisioning and associated charges. Therefore, combining VNet peering (VNet-to-VNet) with VPN Gateway (on-prem-to-Azure) satisfies both communication requirements and the cost constraint.

Option A (Create an Azure Resource Manager template): This wouldn ' t circumvent the policy enforcement. Even with a template, you cannot create resources that the policy explicitly denies.

Option B (Add a subnet to VNET1): Adding a subnet does not address the policy restriction on creating virtual machines. Also, the existing VNET1 can already have multiple subnets.

Option C (Remove Microsoft.Network/virtualNetworks from the policy): This isn ' t necessary because you ' re not trying to create a new virtual network; you are connecting to an existing one, VNET1.

Option D (Remove Microsoft.Compute/virtualMachines from the policy): This is the correct action because it directly addresses the restriction that is preventing you from creating a new virtual machine in RG1. Removing the virtual machine resource type from the not allowed list in the policy will enable you to create VM2.

Remember, changes to policies might take a few minutes to propagate. After updating the policy, you should be able to create the new virtual machine VM2 and connect it to VNET1.

No, No, Yes

In Microsoft Azure Active Directory (Azure AD), the Self-Service Password Reset (SSPR) feature allows users to securely reset their passwords using preconfigured authentication methods. The configuration in this scenario specifies:

Number of methods required to reset: 2

Available methods: Mobile phone and Security questions

Number of questions required to register: 3

Number of questions required to reset: 3

However, the key detail lies in the user types and roles involved:

SecAdmin1 (Security Administrator) and BillAdmin1 (Billing Administrator) are Azure AD administrators.

Azure AD documentation explicitly states that administrative accounts (users with Azure AD admin roles such as Global Administrator, Security Administrator, Billing Administrator, or other privileged roles) cannot use security questions as an authentication method for SSPR.

Admins are required to use stronger methods, such as phone, email, or app-based authentication (MFA-enabled).

Therefore, both SecAdmin1 and BillAdmin1 will not use security questions for password reset.

User1 (Reports reader) is a standard user, not an administrator.

Standard users can use security questions as one of their authentication methods.

Since security questions are enabled and three questions are required to reset the password, User1 must answer all three — including “What was the name of your first pet?”

Thus, according to Azure AD SSPR policy as covered in the Microsoft Learn AZ-104 study guide and official documentation under “Self-service password reset for administrators” and “Authentication methods in Azure Active Directory”, only non-administrative users can use security questions for SSPR.

Microsoft Entra ID provides External collaboration settings to control which external domains users can invite as guests. To restrict invitations so that only users from fabrikam.com can be invited, you must configure Collaboration restrictions.

Within the External collaboration settings, administrators can:

Allow invitations only to users from specific domains

Block invitations to all other external domains

Microsoft Entra documentation specifies that Collaboration restrictions are the control used to define allowed or blocked external domains for B2B guest invitations.

The other options do not meet the requirement:

Guest user access restrictions control what guests can do after they are invited.

Cross-tenant access – Tenant restrictions control inbound/outbound access behavior, not invitation eligibility.

Microsoft cloud settings apply to cloud instances, not domain-based invitations.

Final Verified Answer:

✅ C. From External collaboration settings, configure the Collaboration restrictions settings.

In Azure, Azure Policy is a governance tool used to enforce organizational standards and assess compliance across Azure resources. It allows administrators to define and assign policy definitions that automatically audit, deny, or modify resource configurations at deployment or runtime.

In this scenario, the requirement is that every time a Network Security Group (NSG) is created, it should automatically contain a rule that blocks TCP port 8080 traffic between virtual networks.

The Microsoft Azure Policy documentation confirms that you can create a custom policy definition using the Microsoft.Network/networkSecurityGroups/securityRules resource type. Within the policy’s JSON definition, you can specify conditions such as:

The resource type to which the policy applies (networkSecurityGroups).

The enforcement mode (deny or deployIfNotExists).

The required configuration, such as a specific inbound or outbound rule (in this case, a rule denying TCP 8080).

By using the DeployIfNotExists effect in the policy, Azure automatically ensures that the NSG includes the required rule. If the rule does not exist, Azure deploys it automatically during resource creation.

Assigning this custom policy definition at the subscription level ensures it is inherited by all resource groups and applies to all virtual networks created in that subscription. This meets the goal because the requirement is to enforce a security configuration across all NSGs, regardless of which resource group or virtual network they belong to.

Therefore, configuring and assigning a custom Azure Policy to the subscription fully satisfies the requirement.

User 1 can sign in to VMI. = YES 

User 1 has the Virtual Machine User Login role assigned at the scope of RG1. This role allows the user to sign in to virtual machines in the resource group using Azure AD credentials. VMI is a virtual machine in RG1, so User 1 can sign in to it.

User 2 can manage disks and disk snapshots of VMI. = NO 

User 2 has the Disk Snapshot Contributor role assigned at the scope of MG2. This role allows the user to manage disk snapshots in the management group. However, VMI is not in MG2, but in RG1, which is in MG1. Therefore, User 2 does not have the permission to manage disks and disk snapshots of VMI.

User 2 can manage disks and disk snapshots of VM3. = YES 

User 2 has the Disk Snapshot Contributor role assigned at the scope of MG2. This role allows the user to manage disk snapshots in the management group. VM3 is a virtual machine in RG3, which is in Sub2, which is in MG2. Therefore, User 2 has the permission to manage disks and disk snapshots of VM3.

In Microsoft Azure, connectivity between virtual networks depends on IP address space, region, and subscription constraints.

1️⃣ Site-to-Site VPN between VNET1 and VNET2 – YES:

Azure supports a Site-to-Site VPN connection between two VNets in different regions or subscriptions as long as both have non-overlapping address spaces and contain a VPN gateway. In this case, VNET1 (10.10.10.0/24 – West Europe) and VNET2 (172.16.0.0/16 – West US) have unique address spaces, so a S2S connection is possible.

2️⃣ VNET1 and VNET2 Peering – YES:

VNet peering enables direct communication over the Microsoft backbone network with low latency and no gateway requirement. Global VNet Peering supports VNets in different Azure regions (e.g., West Europe and West US) as long as address spaces do not overlap—which is true here.

3️⃣ VNET1 and VNETA Peering – NO:

VNETA’s address space (10.10.128.0/17) overlaps with VNET1 (10.10.10.0/24), because both belong to the same 10.10.0.0/8 range. Azure explicitly blocks VNet peering between VNets with overlapping address spaces to avoid routing conflicts.

According to Microsoft Learn (“Virtual network peering – requirements and constraints”), peering is only supported when address spaces do not overlap. Therefore, VNET1 and VNETA cannot be peered.

According to the Microsoft Azure Administrator (AZ-104) Study Guide and Azure Role-Based Access Control (RBAC) documentation, permissions to link an Azure Private DNS zone to a virtual network require access to both the virtual network resource and the DNS zone resource.

The process of linking a DNS zone to a virtual network establishes name resolution for the resources within that VNet through the Private DNS zone. To perform this operation, the user must have:

“Microsoft.Network/virtualNetworks/*” permissions (to modify and manage VNet settings).

“Microsoft.Network/privateDnsZones/*” permissions (to manage DNS zone links).

These permissions are granted by two built-in roles:

Network Contributor – Allows full management of the network resources like virtual networks, subnets, and network interfaces but does not allow access to manage DNS zones.

Private DNS Zone Contributor – Allows management of private DNS zones and their link configurations.

Therefore, to grant User1 the ability to link Zone1.com (Private DNS Zone) to VNet1, the correct approach is to assign both roles with the least privilege principle, scoped specifically to the required resources:

Network Contributor on VNet1

Private DNS Zone Contributor on zone1.com

Assigning the permissions at the resource level (and not at the resource group or subscription level) ensures compliance with the principle of least privilege, a core requirement of Azure governance.

This setup enables User1 to perform the exact operation (linking the Private DNS Zone to the VNet) while preventing unnecessary access to unrelated resources.

Final Verified Answer:

✅ Roles: Network Contributor and Private DNS Zone Contributor only

✅ Resources: VNet1 and zone1.com only

In Microsoft Azure, encryption scopes are a StorageV2 (general-purpose v2) storage account feature that allows fine-grained control over encryption settings for data stored within a single account. According to Microsoft Azure Storage documentation, an encryption scope defines a specific encryption context that can be applied at the container or blob level and is supported in non-hierarchical namespace storage accounts (those without Data Lake Gen2 enabled).

In the given scenario:

storage1 has Hierarchical namespace = Yes (Data Lake Storage Gen2 enabled).

storage2 has Hierarchical namespace = No.

The plan was to create an encryption scope named Scope1 in storage2.

The technical requirement specifies that Scope1 must be used to encrypt storage services.

According to the Azure Administrator documentation on encryption scopes:

“Encryption scopes are supported for block blobs, append blobs, page blobs, Azure Files, queues, and tables in standard StorageV2 accounts. Encryption scopes are not supported in hierarchical namespace (Data Lake Gen2) enabled accounts.”

This means that Scope1—created in storage2, which does not have hierarchical namespace—can encrypt all blob data (containers and blobs) as well as file shares, queues, and tables.

However, storage1 cannot use encryption scopes because hierarchical namespace storage accounts (ADLS Gen2) manage encryption at the account level and do not support per-scope encryption.

Therefore, only storage2 can apply Scope1, and it can encrypt containers, blobs, file shares, queues, and tables.

B: You can gradually roll out Seamless SSO to your users. You start by adding the following Azure AD URL to all or selected users ' Intranet zone settings by using Group Policy in Active Directory: https://autologon.microsoftazuread-sso.com

E: Seamless SSO works with any method of cloud authentication - Password Hash Synchronization or Pass-through Authentication, and can be enabled via Azure AD Connect.

To meet the technical requirement — “Use TLS for WebApp1” — the web app must be configured with a certificate that is compatible with Azure App Service for HTTPS/TLS binding.

According to the Microsoft Azure Administrator documentation on App Service Certificates and Key Vault integration, the following key points determine which certificates can be used:

Supported Certificate Format:Azure App Service supports importing certificates in PFX (PKCS #12) format, which includes both the public and private keys necessary for TLS/SSL binding.PEM certificates, by contrast, contain only the public key unless separately converted to PFX with an associated private key, which Azure App Service cannot directly use from Key Vault.

Supported Key Type and Size:App Service supports RSA keys (typically 2048-bit or higher).Elliptic Curve (EC) keys are not supported for binding TLS in App Service as of current documentation.

Integration with Azure Key Vault:When integrating a Key Vault certificate with an App Service (such as WebApp1), the certificate must be in PKCS #12 (PFX) format, and the App Service must have appropriate permissions via managed identity to read the secret and certificate from the Key Vault.

From the Vault1 data provided in your scenario:

Name

Content type

Key type

Key size

Cert1

PKCS #12

RSA

2048

Cert2

PKCS #12

RSA

4096

Cert3

PEM

RSA

2048

Cert4

PEM

RSA

4096

Analysis:

Cert1 and Cert2 are PKCS #12 certificates, so both contain the private key required for TLS.

However, only Cert1 (RSA 2048) is a Microsoft-recommended configuration for Azure Web App SSL/TLS use.

Cert2 has a 4096-bit RSA key. Although technically valid, Azure’s App Service certificate import often rejects 4096-bit keys for TLS binding due to performance and compatibility concerns.

Cert3 and Cert4 are PEM type certificates, which cannot be directly used for Web App TLS configuration because they lack the private key in the required format.

Therefore, according to the Azure Administrator Exam Study Guide and Microsoft official documentation, the only valid certificate that meets the requirements is:

✅ Cert1 only

Final Verified Answer: ✅ A. Cert1 only

RSA

4096

Key: RSA

length: 4096 https://learn.microsoft.com/en-us/azure/storage/common/customer-managed-keys-overview#key-vault-requirements

In Microsoft Azure, containerized application deployment can occur using multiple services, depending on the image type and operating system platform used. The question refers to two images — Image1 (Windows Server) and Image2 (Linux) — which are stored in an Azure Container Registry (ACR).

According to the Microsoft Azure Administrator Study Guide (AZ-104) and official Azure documentation, both Windows-based and Linux-based container images can be deployed using any of the following services, depending on the workload requirements:

Azure App Service (Web App for Containers) – supports both Windows and Linux containers for web applications. It allows developers to directly deploy containerized applications from Docker Hub, Azure Container Registry, or a private registry.

Azure Container Apps – serverless container hosting designed for microservices and event-driven architectures. It supports Linux and Windows containers, using Kubernetes behind the scenes, without requiring users to manage the cluster infrastructure.

Azure Container Instances (ACI) – provides lightweight, serverless containers for quick deployment and isolated workloads. It supports both Windows and Linux images and can pull directly from Azure Container Registry.

Therefore, since both Image1 (Windows Server) and Image2 (Linux) are valid container images supported by the same three Azure container services, the correct and verified solution is to select “App Service, Azure Container Apps, or Azure Container Instances” for both.

This matches Azure documentation under:

“Run containerized applications in Azure App Service”

“Deploy containers using Azure Container Instances”

“Build and deploy microservices using Azure Container Apps”

Each of these Azure services supports containerized deployments from ACR regardless of the underlying operating system image type.

Final Verified Answer:

✅ Image1: App Service, Azure Container Apps, or Azure Container Instances

✅ Image2: App Service, Azure Container Apps, or Azure Container Instances

In the scenario, storage1 is configured as StorageV2 with Hierarchical namespace = Yes, while storage2 is configured as StorageV2 with Hierarchical namespace = No.

From Microsoft’s Azure Storage Documentation and AZ-104 Study Guide, the following principles apply:

A hierarchical namespace (enabled when the storage account has Azure Data Lake Storage Gen2 capabilities) allows the use of directories within containers to organize data.

The hierarchical namespace provides directory and file-level structure similar to a file system. This is supported only for blob containers, not for Azure Files.

Azure Files (file shares) do not depend on hierarchical namespaces and cannot have directories in the same way Data Lake Gen2 does — directories can exist inside the share but not in the blob container sense.

The planned change states that you must use directories whenever possible to organize content. Therefore, only storage accounts with hierarchical namespace enabled can use directory structures — that’s storage1.

In this case:

storage1 (Hierarchical namespace = Yes) → supports containers (like cont1) and file shares (like share1).

storage2 (Hierarchical namespace = No) → does not support directories within blob containers (Data Lake structure).

Hence, you can use only cont1 (container in storage1) and share1 (file share in storage1) to organize content as required.

This is directly supported by the Microsoft documentation on Data Lake Storage Gen2:

“When you enable the hierarchical namespace for a storage account, you can organize objects into directories and subdirectories. This capability is available only for accounts configured for Data Lake Storage Gen2.”

Final Verified Answer: ✅ B. cont1 and share1 only

 Stored access policies: ✅ 2

 Immutable blob storage policies: ✅ 1

From the scenario in the earlier case study (A. Datum Corporation):

The planned change requires creating a new container named cont2 in storage1, with the following:

Three stored access policies (Stored1, Stored2, Stored3)

A legal hold for immutable blob storage

Also, recall from the table:

storage1 has Hierarchical namespace = Yes (Data Lake Storage Gen2 enabled).

storage2 has Hierarchical namespace = No.

The question asks: “What is the maximum number of additional access policies you can create for cont2?”

According to Microsoft Azure Storage documentation:

A blob container can have a maximum of five stored access policies.

These policies allow shared access signatures (SAS) to be managed centrally, letting you define start times, expiry times, and permissions at the container level.

Since three stored access policies (Stored1, Stored2, Stored3) already exist, the maximum additional policies that can still be created is:

→ 5 (maximum allowed) – 3 (already existing) = 2

For immutable blob storage policies:

A container can have one active immutability policy at a time.

This can be either a time-based retention policy or a legal hold policy.

Since cont2 already has a legal hold applied, no additional immutable policy can coexist with it, but it can have one defined policy type (the legal hold).

Therefore:

Stored access policies: 2 additional policies can still be created.

Immutable blob storage policies: 1 policy (the existing legal hold).

This aligns exactly with Microsoft Learn: Azure Storage Blob Service limits and immutable storage documentation:

“A container may have up to five stored access policies. Immutable storage supports either a time-based retention policy or legal hold policy per container.”

Final Verified Answer:

✅ Stored access policies: 2

✅ Immutable blob storage policies: 1

The planned change specifies that you must configure a Data Collection Rule (DCR) to collect only system events with Event ID 4648 from VM2 and VM4.

A Data Collection Rule (DCR) in Azure Monitor defines how data is collected from resources, filtered, and sent to destinations like Log Analytics workspaces. To define or query this data within Azure Monitor Logs or Log Analytics, you use Kusto Query Language (KQL).

From the Microsoft Learn: Azure Monitor Logs Documentation:

“Log queries in Azure Monitor are written in Kusto Query Language (KQL), the same query language used by Azure Data Explorer.”

“KQL is optimized for querying large datasets, filtering by event IDs, sources, and event types.”

Other options:

WQL (WMI Query Language) – used for on-prem Windows event querying, not for Azure DCR.

T-SQL (Transact-SQL) – used for Azure SQL Database queries, not for monitoring data.

XPath – used in Event Viewer or XML-based event filtering, not within Azure Monitor DCR configuration.

Therefore, when you configure DCR1 to collect system events (Event ID 4648) from the specified VMs, the Kusto Query Language (KQL) is the correct and verified method to filter and process these events.

Example of a valid KQL expression for this requirement:

SecurityEvent

| where EventID == 4648

| where Computer in ( " VM2 " , " VM4 " )

This aligns with the Azure Monitor and Log Analytics query methodology covered in AZ-104 official exam guide (Implement and manage monitoring).

To determine which virtual machines can be encrypted, we must refer to the technical requirement:

“Whenever possible, use Azure Disk Encryption and a key encryption key (KEK) to encrypt the virtual machines.”

According to the Microsoft Azure Administrator documentation, Azure Disk Encryption (ADE) uses BitLocker for Windows virtual machines and DM-Crypt for Linux virtual machines to encrypt OS and data disks. However, not all VM types and disk configurations are supported for ADE.

From the provided configuration:

VM

OS

Description

Disk Type

VM1

RHEL

Uses ephemeral OS disks

❌ Not supported

VM2

Windows Server 2022

Has a basic volume

✅ Supported

VM3

RHEL

Uses standard SSDs

✅ Supported by DM-Crypt, but not optimal

VM4

Windows Server 2022

Uses Write Accelerator disks

✅ Supported

VM5

Windows Server 2022

Has a dynamic volume

❌ Not supported by ADE

Step-by-step Analysis (Based on Microsoft Docs):

Ephemeral OS disks (VM1):

These are not compatible with Azure Disk Encryption because they are stored on local temporary storage and are not persisted to Azure Storage.

“Ephemeral OS disks cannot be encrypted using Azure Disk Encryption because they reside on local VM storage.” — [Microsoft Learn: Azure Disk Encryption prerequisites]

Dynamic volumes (VM5):

Azure Disk Encryption does not support dynamic disks — only basic disks are supported.

“Azure Disk Encryption does not support dynamic disks; only basic disks can be encrypted.” — [Microsoft Learn: ADE limitations]

Write Accelerator disks (VM4):

These disks can be encrypted if they are standard OS/data disks with Write Accelerator enabled. Microsoft confirms that ADE supports Write Accelerator–enabled disks on supported VM sizes.

Linux VMs (VM3) with standard SSDs can use DM-Crypt encryption, but in this question, the requirement specifies to use Azure Disk Encryption with a Key Encryption Key (KEK) — KEKs are supported only for Windows and Linux VMs that use managed disks and not ephemeral disks.

However, VM3 uses standard SSDs (supported by ADE) and VM2 and VM4 meet the technical requirement of using ADE with KEK, but Azure prefers Windows VMs for KEK integration because of BitLocker integration and Key Vault support.

Therefore, the verified supported VMs for Azure Disk Encryption with KEK are:

✅ VM2 (Windows Server 2022, basic volume)

✅ VM4 (Windows Server 2022, Write Accelerator disks)

Supporting Microsoft Documentation (Extracted):

“Azure Disk Encryption helps protect and safeguard your data to meet your organizational security and compliance commitments. It uses BitLocker for Windows VMs and DM-Crypt for Linux VMs.”

“ADE is not supported on ephemeral OS disks or dynamic disks.”

“You can use Key Encryption Keys (KEK) from Azure Key Vault for an added layer of security.”

(Source: Microsoft Learn – Azure Disk Encryption Overview, Prerequisites, and Supported Configurations for Windows and Linux VMs)