Hi @Pavan Mali,
Welcome to the Microsoft Q&A Platform! Thank you for asking your question here.
It's Interesting.
I have deployed a VM in my lab and captured the image. I navigated to the image and tried deploying a VMSS with the captured image, and it is replicating fine for me.
This could be a display issue in the Azure portal, where the OS type is not being correctly retrieved from the VMSS configuration. Could you please refresh your browser, clear the cache, and try again? This may resolve the issue.
If you have any further queries, do let us know.
It’s been a few days since you are here! Hope the answer is helpful, please click "Accept Answer" and "Upvote it."