Hello Marcus Wong Theen Nam
Regarding your first question, after exporting the VHD from Azure VM and importing it to Hyper-V, any changes made to the original VM in Azure will not be included in the exported VHD as you know. Within ASR there isn't any workflow that supports the delta replication for a VHD download scenario.
If you need to test the VM before actually migrating it back to on-premises, you can pick a smaller size VM and to the import of VHD and test it once that goes well, you need to plan for a downtime of your azure production VMs and import their VHDs all over again.
There is a documented procedure on how to download a VHD from azure here https://learn.microsoft.com/en-us/azure/virtual-machines/windows/download-vhd?tabs=azure-portal
Any user who wants to move out of Azure will follow this process. I found a good document on this topic here, please check, this would come handy for you https://techgenix.com/moving-azure-vm-on-premise/
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