Yes, you can migrate a Windows Server with a Domain Controller using Azure Migrate tool to a VM in Azure cloud. However, it is recommended to extend your on-premises Active Directory into Azure by adding extra domain controllers in Azure and setting up Active Directory replication if you have a hybrid environment where the on-premises site is connected to your Azure environment. If you're migrating into an isolated environment in Azure requiring its own domain controllers, you can migrate servers using the Migration and modernization tool.
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