It means the VM is booted fine but connectivity may be a issue.
can you please answer the below:
- form when you started facing this issue ?
- are you accessing the VM from public IP or VPN ?
- any changes made to windows firewall ?
- have you checked your NSGs for any blockage observed?
have you tried https://learn.microsoft.com/en-us/troubleshoot/azure/virtual-machines/troubleshoot-rdp-nic-disabled ?