Hi @Mounika b ,
from my understanding and how it works:
The NSG is a network communication filter "between" the Azure network (vNet, Subnet, Public IP) and the Azure resource (Virtual Machine).
The NSG is associated directly with the PA server VM?
regarding 1: With "any-any-allow inbound and outbound security rule" in NSG all traffic from vNet, Subnet, Public IP will be forwarded "unfiltered" to the PA server. The traffic will not filtered be by the NSG but the PA firewall will do the work of filtering the traffic.
regarding 2: With "any-any-allow inbound and outbound security rule" in NSG there is no need to mirror the rules from PA firewall in the NSG.
But ;-)
You have to setup a proper routing for this scenario. All the traffic needs to be routed to the PA firewall, no traffic should bypass the PA server because of routing.
(If the reply was helpful please don't forget to upvote and/or accept as answer, thank you)
Regards
Andreas Baumgarten