Hello @Rajesh Swarnkar ,
Thank you for reaching out to the Microsoft Q&A platform. Happy to answer your question.
In case, if you chose not to delete the disks along with the VM, the disks will remain with disk encryption. It doesn't remove the disk encryption.
One of the restrictions customer managed keys got is, if this feature is enabled for your disk, you cannot disable it. If you need to work around this, you must copy all the data to an entirely different managed disk that isn't using customer-managed keys:
For Linux: Copy a managed disk
For Windows: Copy a managed disk
For details, see https://learn.microsoft.com/en-us/azure/virtual-machines/disks-enable-customer-managed-keys-portal
Hope this helps!
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