Explanation:

Reference:
https://docs.microsoft.com/en-us/azure/active-directory/manage-apps/configure-user-consent
Topic 3, Fabrikam inc
This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.
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General Overview
Fabrikam, Inc. is a consulting company that has a main office in Montreal and branch offices in Seattle and New York. Fabrikam has IT, human resources (HR), and finance departments.
Existing Environment
Network Environment
Fabrikam has a Microsoft 365 subscription and an Azure subscription named subscription1.
The network contains an on-premises Active Directory domain named Fabrikam.com. The domain contains two organizational units (OUs) named OU1 and OU2. Azure AD Connect cloud sync syncs only OU1.
The Azure resources hierarchy is shown in the following exhibit.

The Azure Active Directory (Azure AD) tenant contains the users shown in the following table.

Azure AD contains the resources shown in the following table.

Subscription1 Resources
Subscription1 contains the virtual networks shown in the following table.

Subscription1 contains the network security groups (NSGs) shown in the following table.

Subscription1 contains the virtual machines shown in the following table.

Subscription1 contains the Azure key vaults shown in the following table.

Subscription1 contains a storage account named storage1 in the West US Azure region.
Planned Changes and Requirements
Planned Changes
Fabrikam plans to implement the following changes:
* Create two application security groups as shown in the following table.

* Associate the network interface of VM1 to ASG1.
* Deploy SecPol1 by using Azure Security Center.
* Deploy a third-party app named App1. A version of App1 exists for all available operating systems.
* Create a resource group named RG2.
* Sync OU2 to Azure AD.
* Add User1 to Group1.
Technical Requirements
Fabrikam identifies the following technical requirements:
* The finance department users must reauthenticate after three hours when they access SharePoint Online.
* Storage1 must be encrypted by using customer-managed keys and automatic key rotation.
* From Sentinel1, you must ensure that the following notebooks can be launched:
* Entity Explorer - Account
* Entity Explorer - Windows Host
* Guided Investigation Process Alerts
* VM1, VM2, and VM3 must be encrypted by using Azure Disk Encryption.
* Just in time (JIT) VM access for VM1, VM2, and VM3 must be enabled.
* App1 must use a secure connection string stored in KeyVault1.
* KeyVault1 traffic must NOT travel over the internet.

Explanation:
NO
NO
NO
1.) cannot perform write operation because following scope(s) are locked:
'subscriptions/xxxx/resourceGroups/xxx' Please remove the lock and try again.
2.) When creating a VM in a resource group with a Read Only lock an error is shown:
"The selected resource group is read only"
3.) Because of the read only lock virtual machines cannot be started nor stopped when the lock is added after the machine started. (not part of this use case, but still good to know.
The article referenced in the answer states different because that is scoped to blueprints.
In the Lock Resources pages is states the following regarding starting VMs:
"A ReadOnly lock on a resource group that contains a virtual machine prevents all users from starting or restarting the virtual machine. These operations require a POST request."
https://docs.microsoft.com/en-us/azure/azure-resource-manager/management/lock-resources

Explanation:

Box 1: Yes
User1 is member of Group1. Sign in from unfamiliar location is risk level Medium.
Box 2: Yes
User2 is member of Group1. Sign in from anonymous IP address is risk level Medium.
Box 3: No
Sign-ins from IP addresses with suspicious activity is low.
Note:

Azure AD Identity protection can detect six types of suspicious sign-in activities:
* Users with leaked credentials
* Sign-ins from anonymous IP addresses
* Impossible travel to atypical locations
* Sign-ins from infected devices
* Sign-ins from IP addresses with suspicious activity
* Sign-ins from unfamiliar locations
These six types of events are categorized in to 3 levels of risks - High, Medium & Low:
References:
http://www.rebeladmin.com/2018/09/step-step-guide-configure-risk-based-azure-conditional-access-policies/

Explanation:
Box 1: able to connect to East US 2
The StorageEA2Allow has DestinationAddressPrefix {Storage/EastUS2}
Box 2: dropped
Reference:
https://docs.microsoft.com/en-us/azure/virtual-network/manage-network-security-group

Reference:
https://docs.microsoft.com/en-us/azure/sentinel/tutorial-detect-threats-custom