A high-performance, durable block storage designed to be used with Azure Virtual Machines and Azure VMware Solution.
Hi,
You need to delete the Recovery partition and then you will be able expand your OS volume. You can't make use of WinRE in Azure VM like you can on physical PC, so you are not losing anything by removing it.
To delete Recovery partition please follow instructions in article below:
Can't extend an OS volume because a recovery partition blocks the extension - Resolution
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Thanks.
-TP