Here is the MSFT docs: https://learn.microsoft.com/en-us/azure/virtual-machines/windows/expand-disks
Its a little over kill – you can just
1. Go to the VM in Azure and shut it down
2. Then set the disk size to a higher size (Eg. 2Tb from 512 GB)
3. Then start the VM and RDP into it.
4. Go to Disk Management and expand the DB disk to use the full space.