Hi Sajid Abbas (Ismaili CIVIC Centre Lead),
Welcome to the Microsoft Q&A Platform! Thank you for asking your question here.
To license a Windows 11 VM on Azure, you have a couple of options:
Bring Your Own License (BYOL) this is the option you mentioned, where you use your existing Windows 11 license. This is common for organizations that already have Windows 11 Enterprise E3/E5 or similar licenses.
You can also deploy a Windows 11 VM directly from the Azure Marketplace, which includes the OS license. Here’s how you can do it:
Create a new VM: Go to the Azure portal, click on “Create a resource” and while selecting the image click on see all images as show in the below screenshot.
Select the appropriate image: Choose the “Windows 11 Enterprise multi-session” or another suitable image.
After configuring, review the settings and click “Create” to deploy the VM.
For more information, please refer to the below documentation:
Deploy Windows 11 on Azure.
If you have any further queries, do let us know. If the comment is helpful, please click "Upvote".