Hi @Dheeman Das
I have already faced a similar problem. Below are the steps I did to solve it:
1 - I exported the VM disk to the local environment (onpremise)
2 - I configured a new VM in Hyper-v
3 - I attached windows server media ISO and did the repair
4 - VM worked locally so I re-uploaded it to azure
5 - I provisioned a new vm with the repaired disk.
If the machine is important and the backup doesn't work, I recommend doing the steps above.
In my case even the backup didn't work, because it was already having a problem while the backup was running, but I only found out when I had to restart.
Get in touch if you need more help with this issue.
--please don't forget to "[Accept the answer]" if the reply is helpful--