Box 1: VM1 only -
A virtual machine may have an association to multiple DCRs, and a DCR may have multiple virtual machines associated to it.
In the Resources tab, add the resources (virtual machines, virtual machine scale sets, Arc for servers) that should have the Data Collection Rule applied.
Box 2: Workspace1 only -
On the Destination tab, add one or more destinations for the data source. You can select multiple destinations of same of different types, for instance multiple Log
Analytics workspaces (i.e. "multi-homing").
Note: The Data Collection Rules (or DCR) improve on a few key areas of data collection from VMs including like better control and scoping of data collection (e.g. collect from a subset of VMs for a single workspace), collect once and send to both Log Analytics and Azure Monitor Metrics, send to multiple workspaces (multi- homing for Linux), improved Windows event filtering, and improved extension management.
Reference:
https://docs.microsoft.com/en-us/azure/azure-monitor/agents/data-collection-rule-azure-monitor-agent