@Elsemary, Hadeer
I understand you are trying to copy a VM to another tenant and facing the above error.
Prior to creating the VHD and copying it to the new storage account you need to run Sysprep on the VM and generalize it. After you have run Sysprep on a VM, that VM is considered generalized and cannot be restarted. The process of generalizing a VM is not reversible. If you need to keep the original VM functioning, you should create a copy of the VM and generalize its copy.
Please try this and see if it resolves your issue.
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