Thanks for posting your question in the Microsoft Q&A forum.
During the test failover, you’ll need to specify an Azure virtual network where the test VMs will be created. Site Recovery will attempt to create the test VMs in a subnet with the same name and IP address as provided in the Compute and Network settings of the original VM.
The resource group for the test VMs will be the same as the resource group associated with the target virtual network. If the target virtual network is in a specific resource group, the test VMs will be created in that same resource group.
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