You can clone a Azure VM in multiple ways,
VM Image Capture: If it is a Windows VM, then run sysprep for generalizing the windows installation.
Ref:
https://learn.microsoft.com/en-us/azure/virtual-machines/windows/capture-image-resource
https://learn.microsoft.com/en-us/azure/virtual-machines/capture-image-portal
VM Disk Snapshot: You can create a snapshot of a VHD and then create a managed disk from the snapshot and deploy VM.
Ref:
https://learn.microsoft.com/en-us/azure/virtual-machines/snapshot-copy-managed-disk?tabs=portal#create-a-snapshot-of-a-vhd
https://learn.microsoft.com/en-us/azure/virtual-machines/windows/create-vm-specialized-portal
Hope this helps.
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