Hi @Monica Lu
Thank you for reaching out to the Microsoft Q&A platform.
The VM agent is responsible for managing communication between the VM and the Azure platform. If the agent is not in a "Ready" state, it can cause issues with the VM, including RDP connectivity issues.
I see you mentioned, you have tried restarting the VM a few times, did you try the redeploy+reapply as suggested in the below SO question?
Please note it will stop-start the device, and also helps the VM get back to a valid/healthy state. This is NOT deploying a new blank VM, but rather fixing the existing VM (just to reassure those who find the term redeploy
a bit scary)
Similar thread: https://learn.microsoft.com/en-us/answers/questions/947624/virtual-machine-agent-status-is-not-ready-not-able
Azure VM RDP issue troubleshooting guide:
https://learn.microsoft.com/en-us/troubleshoot/azure/virtual-machines/detailed-troubleshoot-rdp
--please don't forget to "[Accept the answer]" if the reply is helpful--