Hello @Mohammad Yusuf ,
As far as I understand your Dynamics instance and Azure subscription both should be part of the same tenant . And you will not be able to deploy the VM on a partner subscription because you will need to connect your dynamics instance to the subscription to deploy it as per the first step mentioned here "Create a connection between an LCS project and your Azure subscription. You will need your Azure subscription ID and authorize the use of the subscription. ". And One azure subscription cannot be associated with more than one tenants at the same time. Hence this may not be possible .
I would suggest to post in dynamics finance forum where you may get more information from other experts as Microsoft QnA forum currently does not support dynamics and power platform products .
Thank you.
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