Hello
Thank you for posting in Microsoft Community forum.
To extend the primary partition (C drive), the first condition is that there is unallocated disk space. In your case, you need to delete the Recovery partition to achieve this.
Or reinstall Windows Server 2022 Standard Edition, and then create multiple new disk partitions in the drive selection interface, so that you can add or reduce primary partitions in disk management after entering the operating system.
Best Regards,
Wesley Li