Hello @James Hao
Thanks for posting your question in the Microsoft Q&A forum.
Yes, it is generally acceptable to create a backend pool using the NICs from the inbound NAT rule and then configure an outbound rule for the Standard Load Balancer. This approach ensures that outbound connectivity is maintained after the upgrade.
When upgrading an Azure Basic Load Balancer to a Standard SKU, maintaining outbound connectivity is crucial because the Standard SKU requires explicit configuration for outbound connections, unlike the Basic SKU where outbound connectivity is implicit. Your approach of creating a backend pool using all the NICs from the inbound NAT rule and then creating an outbound rule based on this backend pool is a valid and common practice.
The Microsoft link also may help you in this upgrade - https://learn.microsoft.com/en-us/azure/load-balancer/upgrade-basic-standard-with-powershell
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