- A
The subnet-level deny rule is evaluated before the later allow rule because lower priority numbers are processed first.
NSG rules are processed in ascending priority order, so a lower number is evaluated before a higher number.
- B
The NIC allow rule can override a deny decision already made by the subnet NSG.
Why wrong: A deny at either scope blocks the traffic; a NIC allow does not supersede a subnet deny.
- C
Both the subnet NSG and the NIC NSG are evaluated, and a deny in either one blocks the packet.
Azure evaluates both scopes, and any matching deny rule at either scope stops the traffic flow.
- D
The allow rule must use a private IP source range because public source ranges are not valid in NSG rules.
Why wrong: NSG source prefixes can be public IPs, service tags, or private ranges depending on the design.
- E
A user-defined route with next hop Internet would bypass the NSG deny and restore access.
Why wrong: Routing decisions do not override NSG filtering; a deny rule still blocks the traffic.
AZ-104 Implement and Manage Virtual Networking Practice Question
This AZ-104 practice question tests your understanding of implement and manage virtual networking. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A VM in subnet S1 has two network security groups applied: one at the subnet and one directly on the NIC. The subnet NSG contains DenyAllInbound at priority 100 and AllowHTTPSFromOffice at priority 200. The NIC NSG contains AllowHTTPSFromOffice at priority 150 and no deny rules. Office users still cannot reach the VM on TCP 443. Which two statements are correct? Select two.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
The subnet-level deny rule is evaluated before the later allow rule because lower priority numbers are processed first.
Option A is correct because Azure Network Security Groups (NSGs) process rules in order of priority, with lower numbers evaluated first. The subnet NSG's DenyAllInbound rule at priority 100 is evaluated before the AllowHTTPSFromOffice rule at priority 200, resulting in an immediate deny for all inbound traffic, including HTTPS from the office. Since the subnet NSG denies the traffic at priority 100, the NIC NSG's allow rule at priority 150 is never reached, as the packet is already blocked.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
The subnet-level deny rule is evaluated before the later allow rule because lower priority numbers are processed first.
Why this is correct
NSG rules are processed in ascending priority order, so a lower number is evaluated before a higher number.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
The NIC allow rule can override a deny decision already made by the subnet NSG.
Why it's wrong here
A deny at either scope blocks the traffic; a NIC allow does not supersede a subnet deny.
When this WOULD be correct
This option would be correct in a scenario where the subnet NSG has no deny rule, or the deny rule has a higher priority number than the NIC allow rule, allowing the NIC allow rule to permit traffic that would otherwise be denied by a lower-priority subnet rule. For example, if the subnet NSG had DenyAllInbound at priority 300 and the NIC NSG had AllowHTTPSFromOffice at priority 150, the NIC allow would override the subnet deny.
- ✓
Both the subnet NSG and the NIC NSG are evaluated, and a deny in either one blocks the packet.
Why this is correct
Azure evaluates both scopes, and any matching deny rule at either scope stops the traffic flow.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
The allow rule must use a private IP source range because public source ranges are not valid in NSG rules.
Why it's wrong here
NSG source prefixes can be public IPs, service tags, or private ranges depending on the design.
When this WOULD be correct
In a scenario where a VM must only accept traffic from a private IP range (e.g., 10.0.0.0/8) and the NSG rule incorrectly specifies a public range, then using a private source range would be required to allow traffic.
- ✗
A user-defined route with next hop Internet would bypass the NSG deny and restore access.
Why it's wrong here
Routing decisions do not override NSG filtering; a deny rule still blocks the traffic.
When this WOULD be correct
This option would be correct in a question where outbound traffic from a VM is blocked by an NSG, and a UDR with next hop Internet is proposed to force traffic to bypass the NSG via a virtual appliance or direct internet egress, but note that NSGs still apply to outbound traffic unless explicitly overridden by Azure Firewall or similar.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.
✓The subnet-level deny rule is evaluated before the later allow rule because lower priority numbers are processed first.Correct answer▾
Why this is correct
NSG rules are processed in ascending priority order, so a lower number is evaluated before a higher number.
✗The NIC allow rule can override a deny decision already made by the subnet NSG.Wrong answer — click to see why▾
Why this is wrong here
In Azure, network security groups are evaluated in order of priority, and a deny rule at the subnet level with a lower priority number (100) is processed before a higher priority allow rule (200). Once a packet is denied by the subnet NSG, the NIC NSG is not evaluated, so the NIC allow rule cannot override the subnet deny.
★ When this WOULD be the correct answer
This option would be correct in a scenario where the subnet NSG has no deny rule, or the deny rule has a higher priority number than the NIC allow rule, allowing the NIC allow rule to permit traffic that would otherwise be denied by a lower-priority subnet rule. For example, if the subnet NSG had DenyAllInbound at priority 300 and the NIC NSG had AllowHTTPSFromOffice at priority 150, the NIC allow would override the subnet deny.
Why candidates choose this
Candidates may mistakenly think that NIC-level rules always take precedence over subnet-level rules, similar to how firewall rules often have a 'most specific wins' logic, but in Azure NSGs, the effective rule is determined by priority and the first deny encountered blocks evaluation.
✗The allow rule must use a private IP source range because public source ranges are not valid in NSG rules.Wrong answer — click to see why▾
Why this is wrong here
NSG rules can use public source IP ranges; there is no restriction that only private IP ranges are allowed. The issue in the question is about rule priority and evaluation order, not source IP type.
★ When this WOULD be the correct answer
In a scenario where a VM must only accept traffic from a private IP range (e.g., 10.0.0.0/8) and the NSG rule incorrectly specifies a public range, then using a private source range would be required to allow traffic.
Why candidates choose this
Candidates may confuse NSG rule source restrictions with other Azure networking features (like Azure Firewall or service endpoints) that often involve private IPs, leading them to incorrectly assume NSGs also require private source ranges.
✗A user-defined route with next hop Internet would bypass the NSG deny and restore access.Wrong answer — click to see why▾
Why this is wrong here
A user-defined route (UDR) with next hop Internet does not bypass NSG deny rules; NSGs are evaluated before UDRs for inbound traffic, and a deny in any NSG blocks the packet regardless of routing.
★ When this WOULD be the correct answer
This option would be correct in a question where outbound traffic from a VM is blocked by an NSG, and a UDR with next hop Internet is proposed to force traffic to bypass the NSG via a virtual appliance or direct internet egress, but note that NSGs still apply to outbound traffic unless explicitly overridden by Azure Firewall or similar.
Why candidates choose this
Candidates may confuse the order of evaluation between NSGs and UDRs, or believe that routing can override security rules, similar to how a default route can bypass a firewall in traditional networking.
Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume NIC-level rules can override subnet-level rules due to a misconception about rule precedence, but Azure applies both NSGs cumulatively, and a deny at any level blocks the traffic, so the subnet's lower-priority deny rule takes effect before the NIC's allow rule is evaluated.
Detailed technical explanation
How to think about this question
Azure NSGs are stateful and process rules in priority order (lowest to highest) within each NSG, but when both subnet and NIC NSGs are applied, the subnet NSG is evaluated first for inbound traffic. If the subnet NSG denies the packet, the NIC NSG is never consulted, making the subnet NSG the 'first line of defense.' This behavior is critical in multi-tier architectures where subnet-level security policies must be enforced before NIC-level customizations.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Visual reference
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FAQ
Questions learners often ask
What does this AZ-104 question test?
Implement and Manage Virtual Networking — This question tests Implement and Manage Virtual Networking — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: The subnet-level deny rule is evaluated before the later allow rule because lower priority numbers are processed first. — Option A is correct because Azure Network Security Groups (NSGs) process rules in order of priority, with lower numbers evaluated first. The subnet NSG's DenyAllInbound rule at priority 100 is evaluated before the AllowHTTPSFromOffice rule at priority 200, resulting in an immediate deny for all inbound traffic, including HTTPS from the office. Since the subnet NSG denies the traffic at priority 100, the NIC NSG's allow rule at priority 150 is never reached, as the packet is already blocked.
What should I do if I get this AZ-104 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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