Just to make things sure... you are talking about an Azure VM with SQL Server installed on it and you are using Azure Backup to create those backups... right?
As "Automated Backup (for SQL Server 2016+)" doesn't provide "Differential Backups"...
And from your explanation it looks like you even can't see any differential backup in your list... are you sure those backups were taken?
LTR isn't relevant here.
Can you send a screenshot of you backup policy that shows us what you have configured?