Hello @Elisha George ,
Thank you for reaching out to Microsoft Q&A platform. Happy to answer your question. This particular boot issue is mostly observed due to some registry keys or its references been missing which are part of mandatory boot drivers like Vmbus.sys that needs to be there for VMs to boot on azure
I am suspecting this boot driver registry is missing on the on-premises VM itself, but it never have problem booting the VM on-premises however is mandatory for azure.
Please login to the on-premises VM, if exists. Then navigate to below registry key and check for all the required keys as highlighted in the below snippet and expand them all to capture a screenshot, share the same with me
HKEY_LOCAL_MACHINE\SYSTEM\DriverDatabase\DriverPackages\wvmbus.inf_amd64_xxxxxxxxxxx
Example