Hi Jun Ye,
We contacted the content author and received confirmation that the default NSG created by policy can be ignored, as it does not affect the lab's functionality. In this lab, the NSG assigned to the NICs of the VMs takes precedence over any NSG assigned to the VNet or subnet.
Additionally, please be aware that SSH connections may temporarily fail after the NSG rules are applied. If this happens, waiting a minute or so should resolve the issue and allow the connection to work as expected.
Please Accept the Answer so that it will be useful for others in the community.