Box 1: Yes -
Any new deployments to Azure must be redundant in case an Azure region fails.
Traffic Manager is resilient to failure, including the failure of an entire Azure region.
Box 2: No -
Traffic Manager provides load balancing, but not auto-scaling.
Box 3: No -
Automatic failover using Azure Traffic Manager: when you have complex architectures and multiple sets of resources capable of performing the same function, you can configure Azure Traffic Manager (based on DNS) to check the health of your resources and route the traffic from the non-healthy resource to the healthy resource.
Reference:
https://docs.microsoft.com/en-us/azure/traffic-manager/traffic-manager-overview
https://docs.microsoft.com/en-us/azure/networking/disaster-recovery-dns-traffic-manager
