An Azure native disaster recovery service. Previously known as Microsoft Azure Hyper-V Recovery Manager.
Hello Anandha Chandrasekaran,
Greetings! Thanks for raising this question in Q&A forum.
The root cause of your issue is a known behavior in the ASR Modernized experience. When using Private Link with the modernized experience for VMware VMs, public access is still needed for a few specific resources and more importantly, the privatelink.prod.migration.windowsazure.com private DNS zone must be explicitly created and linked, because this endpoint is used by Site Recovery to perform discovery of the on-premises environment. Without this DNS zone in place, the appliance can heartbeat successfully but the VM inventory never gets populated which matches exactly what you are seeing.
Here are the steps to resolve this:
Create the missing private DNS zone for discovery In the Azure portal, go to Private DNS Zones and create a new zone named privatelink.prod.migration.windowsazure.com. This is separate from the vault's private endpoint DNS zone and is specifically needed for vCenter VM discovery in the modernized architecture.
Link the DNS zone to your bypass virtual network Go to the private DNS zone you just created, select Virtual network links in the left pane, click Add, and select your bypass network (the VNet where the ASR appliance communicates with Azure).
Verify the private endpoint DNS records are resolving correctly on the appliance On the ASR appliance, run nslookup prod.migration.windowsazure.com and confirm it resolves to a private IP address. If it still resolves to a public IP, the DNS zone link or A-record is missing.
Allowlist the required public URLs from the appliance Even with private endpoints, certain URLs must remain reachable from the appliance, including *.windows.net, *.msftauth.net, *.msauth.net, *.microsoft.com, *.live.com, and *.office.com. Ensure these are not blocked by your on-premises proxy or firewall.
If using a proxy on the appliance, ensure CNAME resolution is working If proxy-based configuration is used, make sure that the proxy resolves any CNAME records received while looking up the URLs, otherwise discovery calls can silently fail even when the heartbeat looks healthy.
Re-trigger VM discovery from the appliance configurator Once DNS is confirmed, open the appliance configuration manager (https://<appliance-IP>:44368), navigate to the vCenter connection, and trigger a re-discovery. Wait 10–15 minutes and then check the Enable Replication VM selection list again in the portal.
If the issue persists after the above steps, raise a support ticket with Microsoft Share the Discovery Service logs from the appliance along with the DNS resolution output. A Microsoft support engineer can verify the private endpoint DNS record mappings on the backend and confirm whether all five private link microservice endpoints were created correctly for your vault.
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Best Regards,
Jerald Felix.