@CBC Spot instances are a bit risky for AVD as you can't make any predictions on their availability. The user might get disconnected and lose any unsaved work.
Using automatic scaling you can achieve similar cost savings with a better user experience since you can warn the user about his session being disconnected when a scale-down event is happening. I checked with the product team, and they also recommended using our autoscale service to manage costs for AVD. You could also look at various VM types to meet your cost and performance needs.
In my opinion, VDI is not a valid workload for Azure Spot VMs. Azure SPOT VM docs say Deploy workloads that can handle interruptions and don't need to be completed within a specific period of time. Run workloads for development, testing, quality assurance, advanced analytics, big data, machine learning and AI, batch jobs, rendering and transcoding of videos, graphics, and images at a very low cost.
Hope that helps.
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