Hello @Vivek Komarla Bhaskar ,
Sorry, Initially, I thought it could be a firewall issue. As per your issue, I spun up an Azure VM and was able to reproduce the issue from my end.
Here are my findings.
Case1:
If you use windows authentication, make sure the domain account user name and password are correct. When I used the incorrect credentials, I got the 22300 error.
Case2:
If you use SQL authentication, ensure that Mixed mode is enabled on the SQL server. I got the 22300 error when the mixed mode was disabled and using the SQL account.
Also, you can test this from your Azure VM.
Open SSMS and connect to SQL using either windows or SQL authentication. If your authentication is successful, the same credentials will work in the linked server connection.
I hope this helps. Please let me know if you have any further questions.
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