The correct answer requires three specific actions: configuring a Key Vault with soft-delete and purge protection, granting the Azure Disk Encryption service (Microsoft.Azure.Security) the Key Vault Contributor role, and enabling encryption on each VM using the Set-AzVMDiskEncryptionExtension cmdlet. These steps are mandatory because Azure Disk Encryption relies on the Key Vault to store and manage the encryption keys and secrets, and the service principal must have the Contributor role to write these keys into the vault. On the AZ-500 exam, this question tests your understanding of the prerequisites for enabling Azure Disk Encryption on Azure VMs, often appearing as a multi-select scenario where you must distinguish required actions from common distractors like enabling Backup or turning off the VM. A frequent trap is assuming encryption requires downtime—it does not, as ADE supports online encryption. Memory tip: think "Vault, Role, Extension" to recall the three pillars—soft-delete vault, Contributor role for the service, and the encryption extension on each VM.
AZ-500 Secure compute, storage, and databases Practice Question
This AZ-500 practice question tests your understanding of secure compute, storage, and databases. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
You need to ensure that Azure Disk Encryption (ADE) is enabled on all Azure VMs in a subscription. Which THREE actions are required to implement ADE? (Choose THREE.)
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Run the Set-AzVMDiskEncryptionExtension cmdlet on each VM.
Option A (Key Vault with soft-delete and purge protection), Option C (assign Key Vault Contributor role to Azure Disk Encryption service), and Option D (enable encryption on each VM using Set-AzVMDiskEncryptionExtension) are required. Option B (Backup) is not required for encryption. Option E (turning off VM) is not needed; encryption can be done online.
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.
✓
Run the Set-AzVMDiskEncryptionExtension cmdlet on each VM.
Read the scenario before looking for a memorised answer.
✓
Create an Azure Key Vault with soft-delete and purge protection enabled.
Why this is correct
ADE requires these features for key management.
Related concept
Read the scenario before looking for a memorised answer.
✗
Turn off the VMs before enabling encryption.
Why it's wrong here
ADE supports encryption without downtime (online).
✗
Configure Azure Backup for the VMs.
Why it's wrong here
Backup is not a prerequisite for encryption.
✓
Grant the Azure Disk Encryption service (Microsoft.Azure.Security) the Key Vault Contributor role.
Why this is correct
This allows the service to access keys.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-500 question in full detail.
Identify which AZ-500 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Secure compute, storage, and databases — This question tests Secure compute, storage, and databases — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Run the Set-AzVMDiskEncryptionExtension cmdlet on each VM. — Option A (Key Vault with soft-delete and purge protection), Option C (assign Key Vault Contributor role to Azure Disk Encryption service), and Option D (enable encryption on each VM using Set-AzVMDiskEncryptionExtension) are required. Option B (Backup) is not required for encryption. Option E (turning off VM) is not needed; encryption can be done online.
What should I do if I get this AZ-500 question wrong?
Identify which AZ-500 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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