Hello there,
Generally, Azure VM activation issues occur if the Windows VM is not configured by using the appropriate KMS client setup key, or if the Windows VM has a connectivity problem to the Azure KMS service (kms.core.windows.net, port 1688).
Here is a link that has some troubleshooting steps which you can try and see if helps in overcoming your issue
Troubleshoot Azure Windows virtual machine activation problems https://learn.microsoft.com/en-us/troubleshoot/azure/virtual-machines/troubleshoot-activation-problems
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