RE: could not create a connection to the server
Hello,
Are you connecting to Dynamics 365 Business Central Windows Client while connected through the VM / try to logon via the console. Then in your ClientUserSettings.config file on the Azure VM, set the server name should be set to localhost.
Else the server name bust me your FQDN of your Azure VM (like xxx.cloudapp.azure.com), but that should be when connecting from outside the Azure VM (over the Internet). Best is of course to add a DNS label to the Azure VM in the Azure portal with a fixed IP address and secure it with a trusted cert or at least a self signed cert.
If you own a domain, add a cname record to your public DNS pointing to xxx.cloudapp.azure.com. From outside, you then connect to nav.yourdomain.com and directly from the Azure VM, you do connect with localhost.
Ports may also have to be opened in the Azure Portal.