From the exhibit we see that the disk is in the VHDX format.
Before you upload a Windows virtual machines (VM) from on-premises to Microsoft Azure, you must prepare the virtual hard disk (VHD or VHDX). Azure supports only generation 1 VMs that are in the VHD file format and have a fixed sized disk. The maximum size allowed for the VHD is 1,023 GB. You can convert a generation 1 VM from the VHDX file system to VHD and from a dynamically expanding disk to fixed-sized.
Reference:
https://docs.microsoft.com/en-us/azure/virtual-machines/windows/prepare-for-upload-vhd-image?toc=%2fazure%2fvirtual-machines%2fwindows%2ftoc.json

Anonymous access is an authentication method. It allows users to establish an anonymous connection.
Reference:
https://docs.microsoft.com/en-us/biztalk/core/guidelines-for-resolving-iis-permissions-problems

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.
Reference:
https://docs.microsoft.com/en-us/azure/active-directory/users-groups-roles/licensing-groups-resolve-problems

Resource Group location of VMSS1 is the RG2 location, which is West US.
Only Proximity2, which also in RG2, is location in West US
Reference:
https://azure.microsoft.com/en-us/blog/introducing-proximity-placement-groups/