Hi, @Salil Nataraja Pillai Welcome to the Microsoft Q&A forum, and thanks for reaching out.
As we understand the ask here is that you want to replicate the database to an external Azure VM with PostgreSQL using streaming replication. and you want to know if this is supported.
Unfortunately, Streaming replication is not yet supported that is because Azure PG has additional internal DBs and hence doesn't work. you can do logical/pglogical/logical decoding replication.
Looks like you have set up HA on Flex If so, I don't think there is no alternative at this time. But if you don't have HA setup on Flex, you could use logical replication.
Please let me know if you need any additional information.
Regards
Geetha