Microsoft AZ-802 Exam - Topic 2 Question 8 Discussion

Azure Monitor diagnostic settings require the destination storage account to be a Standard-tier account, since Premium-tier storage accounts are explicitly unsupported as diagnostic settings destinations regardless of their storage kind, and for a regional resource like VM1 the storage account must also be located in the same Azure region as the resource being monitored. Storage2, of kind BlockBlobStorage, and storage3, of kind FileStorage, are both Premium-tier storage kinds and are therefore ineligible destinations no matter what region they sit in, since Premium performance tiers for those kinds are inherently Premium-only offerings. Storage4 is a general-purpose v2 account, which is Standard-tier and would otherwise be eligible, but it is located in Central US, a different Azure region from VM1's East US, so the regional-match requirement rules it out for this specific VM. Storage1 is the only account in the table that is simultaneously a Standard-tier general-purpose v2 kind and co-located with VM1 in East US, satisfying both the tier and region requirements at once, which makes it the only valid selection for VM1's diagnostic settings destination.