@Jeremy Montoya Thanks for posting your query on Microsoft Q&A.
Regarding Exemption
Did you try the steps shared in this document to define an exemption : https://learn.microsoft.com/en-us/azure/defender-for-cloud/exempt-resource#define-an-exemption . Is that option deactivated for you? Please share the screenshot as well.
Exemption is is created to exempt an Azure Policy. Please know that some security recommendations are not tied to specific Azure Policy and thus you cannot create exemption.
Disable recommendations
When your security initiative triggers a recommendation that's irrelevant for your environment, you can prevent that recommendation from appearing again. To disable a recommendation, disable the specific policy that generates the recommendation.
The recommendation you want to disable will still appear if it's required for a regulatory standard you've applied with Defender for Cloud's regulatory compliance tools. Even if you've disabled a policy in the built-in initiative, a policy in the regulatory standard's initiative will still trigger the recommendation if it's necessary for compliance. You can't disable policies from regulatory standard initiatives.
To see detailed explanation on the same, see Disable security policies and disable recommendations
Please try the suggestions above and let me know the results in the comments.