AZ-104 Implement and Manage Virtual Networking Practice Question
Two application teams created separate virtual networks so their workloads can communicate through VNet peering. VNet-A uses 10.20.0.0/16. VNet-B was created with 10.20.128.0/17. The peering request fails during validation. What is the best fix?
⚠ Common exam trap
Test-takers frequently think NSG rules or route tables can fix connectivity issues between peered VNets, but the peering validation itself fails due to overlapping address spaces, which is a fundamental design constraint that cannot be overridden by network security or routing policies.
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
✓
Change one VNet to use a non-overlapping address space.
VNet peering requires that the address spaces of the peered virtual networks do not overlap. VNet-A uses 10.20.0.0/16, which includes the entire range from 10.20.0.0 to 10.20.255.255. VNet-B uses 10.20.128.0/17, which is a subset of VNet-A's range (10.20.128.0 to 10.20.255.255). This overlap causes the peering validation to fail because Azure cannot route traffic between overlapping address spaces. Changing one VNet to a non-overlapping address space resolves the conflict.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Add an NSG rule to allow traffic between the two VNets.
Why it's wrong here
Network security groups (NSGs) provide stateful filtering of traffic at the subnet or network interface level based on source/destination IP, port, and protocol. They can be used to permit or deny traffic, but they are evaluated only for traffic that is actually routable between connected networks. Because the overlapping address spaces prevent the peering from being established at all, an NSG rule cannot create a route or resolve the conflict; the peering request will fail before any NSG evaluation occurs.
When this WOULD be correct
An NSG rule to allow traffic would be correct if VNet peering is already established but traffic is blocked. For example, two peered VNets with non-overlapping address spaces where default NSG rules deny inter-VNet traffic, and you need to allow specific communication.
- ✓
Change one VNet to use a non-overlapping address space.
Why this is correct
For VNet peering to succeed, the address spaces of both virtual networks must be unique and must not overlap. Overlapping CIDR blocks make it impossible for Azure's routing engine to determine where to deliver traffic, so the peering request fails. You must either add a non-overlapping address range to one VNet or, if the existing overlapping range is in use, create a new VNet with a non-overlapping address space and migrate resources. Only then can Azure establish the bidirectional peering connection between the two VNets.
- ✗
Create a private endpoint in each VNet.
Why it's wrong here
A private endpoint assigns a private IP address to an Azure PaaS service from a subnet in your VNet, enabling secure in-bound access to that service. It does not extend your VNet's address space, create a peering link, or in any way modify the CIDR range of a virtual network. Since the problem is that the two VNets' address spaces overlap, private endpoints leave that underlying conflict intact and the peering will still fail.
When this WOULD be correct
A question where two VNets need to securely connect to an Azure SQL Database without exposing it to the public internet, and the VNets have non-overlapping address spaces. Creating a private endpoint in each VNet would allow private connectivity to the database.
- ✗
Attach a route table to both subnets.
Why it's wrong here
A route table with user-defined routes controls outbound traffic from a subnet by overriding system routes with a specified next hop type. It can influence where packets are sent, but it operates only after a virtual network connection exists and cannot change the address space of a VNet. The peering creation process will still reject the configuration because Azure requires non-overlapping address spaces at the control plane, independent of any routing table.
When this WOULD be correct
A route table would be correct if VNet peering was established but traffic between subnets in different VNets was not flowing due to asymmetric routing or missing user-defined routes (UDRs) to force traffic through a network virtual appliance (NVA).
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.
✓Change one VNet to use a non-overlapping address space.Correct answer▾
Why this is correct
For VNet peering to succeed, the address spaces of both virtual networks must be unique and must not overlap. Overlapping CIDR blocks make it impossible for Azure's routing engine to determine where to deliver traffic, so the peering request fails. You must either add a non-overlapping address range to one VNet or, if the existing overlapping range is in use, create a new VNet with a non-overlapping address space and migrate resources. Only then can Azure establish the bidirectional peering connection between the two VNets.
✗Add an NSG rule to allow traffic between the two VNets.Wrong answer — click to see why▾
Why this is wrong here
VNet peering fails due to overlapping IP address spaces (10.20.0.0/16 and 10.20.128.0/17 overlap). NSG rules control traffic filtering, not address space conflicts, so adding an NSG rule does not resolve the overlapping address issue.
★ When this WOULD be the correct answer
An NSG rule to allow traffic would be correct if VNet peering is already established but traffic is blocked. For example, two peered VNets with non-overlapping address spaces where default NSG rules deny inter-VNet traffic, and you need to allow specific communication.
Why candidates choose this
Candidates often think that network connectivity issues are solved by adding security rules, confusing traffic filtering with routing or address space conflicts.
✗Create a private endpoint in each VNet.Wrong answer — click to see why▾
Why this is wrong here
Private endpoints are used to securely access Azure PaaS services over a private IP address, not to resolve overlapping IP address spaces between peered VNets. The peering failure is due to address overlap, which private endpoints cannot fix.
★ When this WOULD be the correct answer
A question where two VNets need to securely connect to an Azure SQL Database without exposing it to the public internet, and the VNets have non-overlapping address spaces. Creating a private endpoint in each VNet would allow private connectivity to the database.
Why candidates choose this
Candidates may think private endpoints can bridge any connectivity issue between VNets, confusing their purpose of providing private access to PaaS services with general VNet-to-VNet connectivity solutions.
✗Attach a route table to both subnets.Wrong answer — click to see why▾
Why this is wrong here
Route tables direct traffic between subnets within a VNet or to on-premises, but they cannot resolve overlapping IP address spaces between peered VNets. The peering failure is due to address overlap, not missing routes.
★ When this WOULD be the correct answer
A route table would be correct if VNet peering was established but traffic between subnets in different VNets was not flowing due to asymmetric routing or missing user-defined routes (UDRs) to force traffic through a network virtual appliance (NVA).
Why candidates choose this
Candidates may think that adding routes can fix connectivity issues between VNets, confusing routing problems with the fundamental address space conflict that prevents peering from being established.
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?”
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Related to this question
Learn chapter
Managed Identities for Azure Resources
Key term
Route
A route is a path that data takes through a network from one device or network to another, determined by routing protocols and configured rules.
Key term
VNet peering
VNet peering is a networking connection that links two virtual networks so they can communicate with each other as if they were a single network.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.