Hi Sundar,
Yes, Application Gateway supports WebSocket connections to VMs.
Screenshot/excerpt from features article:
Please see article below for details:
Overview of WebSocket support in Application Gateway
https://learn.microsoft.com/en-us/azure/application-gateway/application-gateway-websocket
Note that Application Gateway for Containers is separate offering.
Please click Accept Answer and upvote if the above was helpful.
Thanks.
-TP