Please check the following for the virtual network and see if it resolves the issue:
Checklist for using your virtual network
- Allow Azure Load Balancer to communicate with the proxy VM in a network security group.
- Disable the private service policy on the subnet.
- Allow VM Image Builder to create a load balancer, and add VMs to the virtual network.
- Allow VM Image Builder to read and write source images, and create images.
- Ensure that you're using a virtual network in the same region as the VM Image Builder service region.
Hopefully this will resolve your issue. If you are still facing issues, please let me know and we can work with you directly to investigate.
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