Hi Ganapathy, Mahesh,
To help you further with this issue, I would like to know a few details.
Could you please share a screenshot of the networking inbound port rules that you have added to the NSG?
Please check the status of the VM Agent? If you're agent status is not ready. Troubleshoot Azure Windows VM Agent issues https://learn.microsoft.com/en-us/troubleshoot/azure/virtual-machines/windows/windows-azure-guest-agent
When connecting to the VM, please make sure you have followed the steps below:
Local account: This is usually the local account username and password that you specified when you created the virtual machine. In this case, the domain is the name of the virtual machine, and it is entered as vmname*username*.
Domain joined VM: If the VM belongs to a domain, enter the username in the format Domain*Username*. The account also needs to either be in the Administrators group or have been granted remote access privileges to the VM.
Domain controller: If the VM is a domain controller, enter the username and password of a domain administrator account for that domain.
https://learn.microsoft.com/en-us/azure/virtual-machines/windows/connect-rdp#connect-to-the-virtual-machine
If you are still unable to connect to the VM via RDP, you can try to connect to the VM using the Azure portal. To do this, go to the VM in the Azure portal, click on the "Connect" button, and select "RDP". This will download an RDP file that you can use to connect to the VM.
Try disabling Network Level Authentication (NLA) and attempt to connect via RDP. This might help bypass any authentication-related issues. Settings>>System>>Remote Desktop>>Untick the checkbox.
If you have any further queries, do let us know.