Hi,
My question boils down to can we just apply Nat Gateway to 1 /24 subnet of the larger virtual network?
A: Yes. You can choose which subnets are associated with the NAT Gateway. You must have it associated with at least one subnet, but can choose multiple subnets if you want. During creation it asks you to select the Virtual Network and then you must choose which subnet(s) you want associated.
In addition, after your NAT Gateway has been created you can click on the Subnets blade and make changes.
Please click Accept Answer and upvote if the above was helpful.
Thanks.
-TP