From the exhibit we see that the disk is in the VHDX format.
Before you upload a Windows virtual machine (VM) from on-premises to Microsoft Azure, you must prepare the virtual hard disk (VHD or VHDX). Azure supports only generation 1 VMs that are in the VHD file format and have a fixed sized disk. The maximum size allowed for the VHD is 1,023 GB. You can convert a generation 1 VM from the VHDX file system to VHD and from a dynamically expanding disk to fixed-sized.
Reference:
https://docs.microsoft.com/en-us/azure/virtual-machines/windows/prepare-for-upload-vhd-image
