Hi Bujar,
Do you have soft delete option selected ? If yes then you will have to deactive the feature and try again to remove the VM or restorepoint. Is your VM also deallocated or deleted? Then the option will be restore the VM and delete the restorepoint and shutdown the VM and delete it.
Check before you start options in this page - https://learn.microsoft.com/en-us/azure/backup/backup-azure-delete-vault?tabs=portal
Hope this helps.
JS
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