Hello @Elliott Kurtz
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Yes, you can exclude certain resource types or specific resources from Azure Policy enforcement. Policy exemptions allow you to create exceptions for specific resources or resource types, allowing them to bypass the policy enforcement.
Please refer to the document which has CLI commands, to create a policy exemption for your existing VM to exclude it from the tag policy enforcement and enable auto-shutdown.
https://learn.microsoft.com/en-us/cli/azure/policy/exemption?view=azure-cli-latest
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