Hi Vince,
For a Windows Server VM without Azure Hybrid Benefit, I normally see billing entry as below:
"Windows" is included as part of the name, and this is indication that Windows Server charges are included in the hourly price.
For Windows Server VM with Azure Hybrid Benefit, I normally see billing entry as below:
"Windows" is not included in the name, and this is indication that it is the base VM compute charges only with no windows server license charges.
For reference, as you would expect the one that includes windows server license is a higher hourly charge.
Please note that there are no "Windows Server 8 vCPU" or other windows server license-related entries. For VMs with SQL Server, I see similar Virtual Machines Licenses line for SQL Server Standard/Enterprise, but that is not Windows Server license.
Now, I have seen "Windows Server 8 vCPU" billing entry before in one of my client's subscriptions. I'm unsure if it shows up for different subscription type such as Enterprise Agreement. I tried to track it down since I first replied to you but was unable thus far.
What I would recommend is for you to open a billing support case (it's free of charge) and ask the support engineer why these two conflicting entries are appearing. If they both have a hourly charge it would seem you may be paying for windows server license twice for same VM.
Creating a new billing support request can be tricky, so below are instructions to help you not get stuck in a loop:
Use this link to start the process:
https://portal.azure.com/#view/Microsoft_Azure_CostManagement/Menu/~/support/openedBy/AzurePortal
Fill out Summary, Problem type, Problem subtype, click Next. There will be a delay, then some recommended solutions will be shown. Do not click on any of the recommended options shown.
In the upper left corner, click Return to support request
Click Next to move to Additional details tab, fill out required information, email/phone, etc., click Next, review details and submit case. After submitting you should receive an automated email with a few minutes and a support engineer should contact you within 1 business day.
Please click Accept Answer and upvote if the above was useful.
Thanks.
-TP