Virtual machine encryption is a robust feature that keeps VMs safe and secure from any unauthorized access. Disks can be encrypted by using the cryptographic keys that are secured in Azure Key Vault, which uses FIPS 140-2 level 2 standards. The cryptographic keys are used to encrypt and decrypt the virtual disks attached to your VM.
Files in Azure storage accounts are by default encrypted using secure storage encryption. But, once you are able to see the storage with a .vhd account, it is not encrypted.
You can use BitLocker to encrypt virtual disks within Azure. ...
