I think the second server is not correctly configured to point/use private endpoint/link, so it is defaulting to public path and triggering the HCRP403 error (mostly the permission issue/network restriction error)
Try the options to resolve:
- Reverify the private endpoint/link configuration.
- Confirm the server is routed through the VNG (Virtual Network Gateway) and it is not reaching Azure over a public network path.
- Make sure outbound traffic to Azure Arc endpoints is not blocked/rerouted.
- Use network trace tools/detailed logs to ensure which endpoint the server is trying to reach.
Hope this might be helpful