The Azure VPN Gateway, when configured with BGP in a multi-site scenario, inherently advertises routes learned from one BGP peer to other connected BGP peers.
This default behavior is fundamental to enabling transit routing, which allows networks connected to the same VPN Gateway to communicate with each other seamlessly.
So, your observation that site2 is receiving a route to site1's subnet (10.100.0.0/24) advertised by the Azure VPN Gateway, with the next hop pointing to the Azure BGP peer, is indeed the normal and expected behavior in this type of configuration.
It signifies that the Azure VPN Gateway is functioning correctly by propagating the routing information learned from one connected site to another via BGP, a standard aspect of BGP transit routing in a multi-site VPN setup.
For more information, please refer the below documents:
https://learn.microsoft.com/en-us/azure/vpn-gateway/vpn-gateway-vpn-faq#bgp
https://learn.microsoft.com/en-us/azure/vpn-gateway/bgp-howto
Kindly let us know if the above helps or you need further assistance on this issue.