Hi @Ali Erkilic ,
if I remember right ARP and GARP are using broadcast.
Here Microsoft confirms broadcast and multicast are not supported in an Azure vNet.
https://learn.microsoft.com/en-us/azure/virtual-network/virtual-networks-faq#do-vnets-support-multicast-or-broadcast
Maybe an Internal Load Balancer is helpful in your scenario?
https://azure.microsoft.com/de-de/blog/internal-load-balancing/
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Regards
Andreas Baumgarten