An Azure service that is used to provision Windows and Linux virtual machines.
As per https://learn.microsoft.com/en-us/azure/virtual-machines/windows/convert-unmanaged-to-managed-disks , this process converts both the OS disk and data disks to managed.
"If you have existing Windows virtual machines (VMs) that use unmanaged disks, you can migrate the VMs to use managed disks through the Azure Managed Disks service. This process converts both the operating system (OS) disk and any attached data disks."
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hth
Marcin