Hi @DavidO-0335
Welcome to Microsoft Q&A Platform. Thank you for reaching out & hope you are doing well.
To Answer your question,
Can you establish a Remote Desktop session from VM1 to VM2, would you agree that the answer is No?
To answer your question: Yes, we can establish an RDP session from VM1 to VM2, unless and until there is a deny all outbound rule configured with high priority on NSG of VM1.
As you said previously, you have configured a deny outbound rule with high priority on NSG of VM2, so we cannot do the RDP session from V2 to VM1.
Kindly let us know if the above helps or you need further assistance on this issue.
If this answers your query, do click **Accept Answer** and **Yes** for was this answer helpful. And, if you have any further query do let us know.
Thanks,
Sai Prasanna.