Hello @Anonymous
Thanks for posting your question on this community.
Azure VNet peering will be used to connect two Azure virtual networks (VNets) together, allowing communication between virtual machines in the connected VNets. And whereas Azure Virtual WAN provides large-scale site-to-site connectivity and is built for throughput, scalability, and ease of use. When you connect a site to a Virtual WAN VPN gateway, it's different from a regular virtual network gateway that uses a gateway type 'site-to-site VPN.
So, when it comes to preferred one, the choice between VNet peering using a VPN gateway and vWAN depends on your organization's specific needs and requirements and the decision should be based on the organization's network architecture and security requirements. VNet peering using a VPN gateway may be preferred for scenarios where secure communication is required between two VNets, but there is no need for a centralized hub for managing the network traffic.
Microsoft Documentations on this with FAQs:
https://learn.microsoft.com/en-us/azure/virtual-wan/virtual-wan-about
https://learn.microsoft.com/en-us/azure/virtual-wan/virtual-wan-faq
Hope this helps, please feel free to respond to this if any questions or concerns.
Thankyou.