If you use internal IPs as backend pool members, you must use virtual network peering or a VPN gateway. Virtual network peering is supported and beneficial for load-balancing traffic in other virtual networks.
https://learn.microsoft.com/en-us/azure/application-gateway/application-gateway-components#backend-pools
It is already answered, refer to the below url.
https://stackoverflow.com/questions/64973238/azure-application-gateway-not-showing-vm-from-other-vnet-in-backend-pool
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