I am new to Sitecore and trying to create a Sitecore development environment. I was planning to build an Azure Virtual machine with Windows 11 Pro N, 16 GB RAM. Just wanted to confirm that If we can have Sitecore 10.2 on Azure VM (Virtualization, docker on windows), is it supported and any challenges someone has faced?
Yes, it's possible. But you need to be careful in the Azure VM you select for this. I generally recommend a D8s_V3.
The key here is, the VM needs to support Nested Virtualization.
To my knowledge, the Dsv3 and Dv3 series is the lowest tier that supports this.
I would recommend 32 GB ram and Premium Storage options, especially if you want to run a Docker based environment.