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When I try to enable peering between the old virtual network that has the old gateway and the new gateway network the option "Use the remote virtual network's gateway or Route Server" is disabled. Is this because I'm trying to create a peer from a virtual network that already has a gateway?
Yes, you are correct as the peered VNet already has a VPN gateway this option will be disabled. This is currently documented here(Step-4) You can't use remote gateways if you already have a gateway configured in your virtual network.
Although you should be able to see this option when the old VPN gateway is deleted. There will be a downtime in this case and it is recommended to perform this operation during a maintenance period.
Hope this helps! Please let me know if you have any additional questions. Thank you!
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