@kumar b Welcome to Microsoft Q&A Forum, Thank you for posting your query here!
You can't reduce the size of a disk, so you have to attach another disk and copy the content over using Azcopy, robocopy or other method.
At the moment, we cannot directly shrink or downsize the azure managed disks. Azure does not support the operation. For more details, please refer to the Faqs for more information.
If we want to downsize the azure disk. We need to export the disk as vhd then shrink the exported VHD. At last, create a new managed disk from the VHD and create a new VM from the new managed disk. For more details, please refer to here
Please let us know if you have any further queries. I’m happy to assist you further.
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