Hi @Ankit Raj Thanks for reaching out. As you mentioned that this is a Developer SKU service, it has one machine, so when it runs to a service update/upgrade or OS upgrade, the machine will go down and therefore, all the service components will go down as well.
Is the issue being still existing? As you mentioned that your service is deployed in a VNET could you please verify if the configurations are made as per the document https://learn.microsoft.com/en-us/azure/api-management/api-management-using-with-vnet?tabs=stv2#configure-nsg-rules.
Dev SKU doesn't offer SLA as it features a single VM you can always upgrade to higher SKUs for better availability (other tiers have SLA because of machine redundancy, in pairs).
reference: https://azure.microsoft.com/en-us/pricing/details/api-management/
let me know incase of further queries, I would be happy to assist you.
Please 'Accept as answer' and ‘Upvote’ if it helped so that it can help others in the community looking for help on similar topics.