Hi Vishal,
Encryption at Host and Server Side Encryption are same thing, only the location where encryption/decryption occurs is different. Yes, you can use Customer Managed Keys with both.
Perhaps you are thinking of Double encryption at rest?
Double encryption at rest
https://learn.microsoft.com/en-us/azure/virtual-machines/disk-encryption#double-encryption-at-rest
Please click Accept Answer and upvote if the above was helpful.
Thanks.
-TP