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Are you able to login into the Serial console? Can you share the screenshot of the error message?
This article provides a solution to an issue in which SSH fails because the /var/empty/sshd file is not owned by the root directory and is not group or world-writable.
Can't connect a Linux VM using SSH connection
This article helps you find and correct the problems that occur due to Secure Shell (SSH) errors, SSH connection failures, or SSH is refused when you try to connect to a Linux virtual machine (VM). You can use the Azure portal, Azure CLI, or VM Access Extension for Linux to troubleshoot and resolve connection problems. These articles explain how to determine, diagnose, and fix issues that you might encounter when you use Azure Virtual Machines. In the navigation pane on the left, browse through the article list or use the search box to find issues and solutions.
Create and use an SSH public-private key pair for Linux VMs in Azure
Hope this helps!
Kindly let us know if the above helps or you need further assistance on this issue.
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