@SadiqhAhmed-MSFT ,thanks for your response.
Few points i would like to highlight.
- there are no firewall/network/connectivity or proxy issues during Azure Migrate Replication configuration.
- Last week we migrated few systems using the same appliance to the Azure QAS Subs/Vnet without issues.
- upon checking the changes implemented, customer had created Azure Policies for tagging in the QAS Subscription which is the root cause for this issue.
Finally, after removing the policy from the Subscription, the issue is sorted and the Replication works.