The delay in between batches can be manually configured by setting the 'pause time between batches' value as per your requirement, by default it is 0 seconds (PT0S). This will ensure that the mentioned pause time is applied before completing the update for all the virtual machines in one batch before starting the update process for the next batch of VMSS instances. You should be able see 'updating' status on the Portal for the first batch, and then observe the mentioned pause time before the next batch goes into updating state.
Links to refer:
https://learn.microsoft.com/en-us/rest/api/compute/virtual-machine-scale-set-rolling-upgrades/get-latest
https://learn.microsoft.com/en-us/azure/virtual-machine-scale-sets/virtual-machine-scale-sets-upgrade-scale-set
Hope this helps.
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