Hello Mayank Sharma
Welcome to Microsoft Q&A Platform, thanks for posting your query here.
In Azure Virtual Machine Scale Sets (VMSS), when deploying across multiple availability zones, Azure tries to evenly distribute the VM instances across the specified zones.
If one of the zones is not having the SKU or VM capacity, the VMSS will still be deployed in the other two zones that have the capacity. The VMs will not be allocated in the zone that does not have the capacity.
In your scenario, if zone 2 does not have the necessary SKU or sufficient capacity, Azure will allocate the VM instances in zone 1 and zone 3, if they are available and meet the requirements. Azure will prioritize deploying the VMs in the available zones rather than concentrating them in a single zone.
Hope that clarifies your query.
If you need further help on this, tag me in a comment.
If the suggested response helped you resolve your issue, please 'Accept as answer', so that it can help others in the community looking for help on similar topics.