Azure policy does not back up persistent AVD VMs.

Question

We're running into a weird issue. We have two Azure policies, one which adds a tag for any VM, the tag name is "backup" and it sets the value to [true]. Then a second policy is set to backup VMs with a given tag to an existing vault in the same region. Tags are being properly applied to all VMs, including the persistent VMs in our AVD host pool. However, the AVD VMs are not even being evaluated by the backup policy. I manually went to one of these VMs and backed it up without a problem. I then create a standard Win11 multisession VM, tag was applied, it was added for backup. Why would the AVD session hosts, which are turned on, same region, same OS, be properly tagged but not even evaluated for backups? This is going to become a very serious problem as the AVD environment grows to over 200 users.

Thanks!