Can Azure Arc be used to manage Azure VMs across multiple subscriptions????

Can Azure Arc be used to manage Azure VMs where Windows Server is installed?

In short, while it's possible to implement it, this is not the intended use case and you should NOT be using Azure Arc in this manner. Essentially, there is no benefit to doing so - only additional implementation/management overhead. Azure VMs are already part of the Azure control plane, so they can be natively managed through Azure tools without needing Azure Arc.

Is it possible to use Azure Arc to manage Azure VMs across subscriptions for governance, cost tracking, or policy-based management?

The same applies here. You do not need Azure Arc to manage Azure VMs across multiple subscriptions. Azure already includes features to handle cross-subscription governance and management, such as:

Azure Policy: You can define and apply policies at the subscription or management group level to enforce rules across all your VMs.

Cost Management and Billing: Azure offers tools to analyze and track costs across multiple subscriptions.

Azure Monitor, Azure Update Manager, and Microsoft Defender for Cloud: These services work across subscriptions and regions natively.

Azure Lighthouse and Azure Resource Graph: These tools allow for multi-tenant and multi-subscription visibility and automation.

Please feel free to let us know, as we are always here to help whenever you need us.

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Marcin