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That's a successful boot, believe it or not! The problem is that your systemd init process is misbehaving badly. My guess is that it isn't finding the daemons it's trying to launch, so maybe you have a disk problem?
GRUB definitely isn't at fault here; GRUB's only job is to start the kernel and give it the name of the root partition, and clearly it has done so. Your problems lie somewhere further down the line.
If this was a local machine, I'd say boot it from a rescue image and look at the systemd journal. But I don't know how you'd do that on a remote server.
How can I fix the Grub and get the server to the login prompt ?
Can you ssh in instead? Then change whatever you want in grub, although doesn't seem to be a grub problem since it's booting linux... but maybe try to fix whatevers broke so you can login your normal way. I dunno really anything about azure other than its some kinda remote host. Is it something that perhaps has paid support, maybe the people local to the machine can fix it for you?
I am strange how did you got the terminal screen-shot,if you can access from vm console, you can restart it in terminal windows and press shift to enter grub menu.
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