Hi Shafi Khaksar,
Thank you for reaching out to us on the Microsoft Q&A forum.
I've provided the Unit 3 repro steps at this link:https://learn.microsoft.com/en-us/answers/questions/2047306/error-when-create-a-linux-virtual-machine-and-inst
If it has been over an hour since completing the prerequisite in Unit 3 – Exercise: Create an Azure Virtual Machine, your VM may have been automatically removed, causing an error in Task 1, Step 2. To avoid this, ensure the prerequisite of creating a virtual machine in Unit 3 is completed within the hour before proceeding. After completing the Unit 3 exercise, move on to the Unit 9 exercise, restart the Cloud Shell, and follow the steps outlined in the document to ensure smooth functionality.
We also tested it on our end and obtained positive results, as shown in the screenshots:
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