An Azure VM backup job starts failing immediately after protection is enabled. The error states that the VM agent is not ready. The VM was created from a custom image and no extensions have ever installed successfully. What should the administrator verify first?

That the Recovery Services vault is in the same resource group as the VM.

Vault placement in the resource group is not the first thing to check for a guest-agent readiness error.

That soft delete is enabled on the vault.

Soft delete helps protect deleted backup data, but it does not resolve an unhealthy guest agent.

That the subscription has enough free Azure Backup storage capacity.

Storage capacity concerns do not cause an immediate VM agent readiness failure on a new backup job.

What does this AZ-104 question test?

Static NAT maps one inside address to one outside address.

What is the correct answer to this question?

The correct answer is: That the Azure VM Agent service is installed and running inside the guest OS. — A backup job that fails with a VM agent readiness message usually indicates that Azure cannot communicate properly with the guest operating system through the required agent. Azure VM Backup relies on the Azure VM Agent to coordinate the backup extension and communicate health. On a VM created from a custom image, this is a common first check. If the agent is missing or unhealthy, backup cannot proceed reliably regardless of policy settings. Why others are wrong: Vault placement and soft delete are not related to a guest agent readiness failure. The same is true for backup storage capacity, which would not normally cause an immediate extension startup issue. The clue in the error message is the VM agent itself, so the troubleshooting should start inside the guest OS rather than in the vault or subscription settings.

What should I do if I get this AZ-104 question wrong?

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.