Box 1: No -
VM1, which is hosting site1.contoso.com, is located in East US. The VM1 endpoint status is degraded. Endpoint monitoring health checks are failing. The endpoint isn't included in DNS responses and doesn't receive traffic.
When an endpoint has a Degraded status, it's no longer returned in response to DNS queries. Instead, an alternative endpoint is chosen and returned. The traffic- routing method configured in the profile determines how the alternative endpoint is chosen.
Priority. Endpoints form a prioritized list. The first available endpoint on the list is always returned. If an endpoint status is Degraded, then the next available endpoint is returned.
The user will connect to site2.us.contoso.com instead.
Box 2: No -
VM3, which is hosting site2.contoso.com, is located in in East US. The VM3 endpoint status is CheckingEndpoint. The endpoint is monitored, but the results of the first probe haven't been received yet. CheckingEndpoint is a temporary state that usually occurs immediately after adding or enabling an endpoint in the profile. An endpoint in this state is included in DNS responses and can receive traffic.
User will connect to site2.contoso.com, not to site2.uk.contoso.com
Box 3: No -
VM3, which is hosting site2.contoso.com, is located in in East US. The VM1 endpoint status is CheckingEndpoint, which is OK (see above).
User will connect to site2.contoso.com, not to site2.japan.contoso.com
Reference:
https://docs.microsoft.com/en-us/azure/traffic-manager/traffic-manager-monitoring
