Azure Load balancer does hash based load balancing. Here are few things to keep in mind when you perform Load balancing with Azure Load Balancer:
- Make sure you select the Session Persistence as None to load balance traffic based on 5 tuple.
- Make sure that the Second VM is responding to the probes. If the probes are down for 2nd VM, then the Load balancer will not forward the traffic to that VM.
- CPU utilization is not always the right method to check the load is being balanced. There might be multiple factors associated. But I get that having less load for majority of time from your screenshot hints no traffic is sent to that VM during that time.
With the above suggestion, I think you should be able to get your Load balancing on track. If you have any questions, let me know.
Regards,
Karthik Srinivas