Hi Sasidhar Challa,
Welcome to the Microsoft Q&A Platform! Thank you for asking your question here.
We understand from your query that you are experiencing an issue as VM Agent status not ready, I have shared troubleshooting steps that might help you.
Check the agent status and version, to check your Linux Agent Version, run:
waagent --version
Verify Minimum version support for virtual machine agents in Azure https://learn.microsoft.com/en-us/troubleshoot/azure/virtual-machines/windows/support-extensions-agent-versionTry updating the Azure Linux Agent https://learn.microsoft.com/en-us/azure/virtual-machines/extensions/update-linux-agent?tabs=ubuntuTry to remove and reinstall the VM Agent
To remove please refer to https://learn.microsoft.com/en-us/azure/virtual-machines/linux/disable-provisioning#remove-the-linux-agent-from-a-running-vm
To re-install please refer to https://learn.microsoft.com/en-us/azure/virtual-machines/extensions/agent-linux#installation
Please check this for troubleshooting guide https://learn.microsoft.com/en-us/troubleshoot/azure/virtual-machines/linux/linux-azure-guest-agentIf you have any further queries, please do let us know. If the answer is helpful, please click "Accept Answer" and "Upvote it" as it can be helpful to others in the community.