An Azure service that provides an enterprise-wide hyper-scale repository for big data analytic workloads and is integrated with Azure Blob Storage.
According to the screenshot, the Linux VM is successfully reaching the Azure Storage private endpoint at 10.6.0.5 on TCP/22. The failure occurs after the SSH/SFTP connection is established. The message “Received disconnect from 10.6.0.5 port 22” means the Storage SFTP service is actively closing the session, rather than TCP/22 simply being blocked.
Because Window-B VM can successfully connect through the same site-to-site path, while the nested Linux VM cannot, I would focus on the difference in the source network path. The Linux VM is behind Hyper-V inside Window-A, so its traffic may be routed/NATed differently. In particular, verify whether Window-A is forwarding the Linux VM traffic correctly and what source IP the Azure side ultimately sees.
From the Linux VM, run sftp -vvv ******@jayrajstorageacc.blob.core.windows.net and compare the output with a successful connection from Window-B. Also verify that the hostname resolves to 10.6.0.5 on both systems and test nc -vz jayrajstorageacc.blob.core.windows.net 22. If both resolve to 10.6.0.5 and TCP/22 succeeds, the next thing to investigate is SFTP authentication/session handling or the source IP/NAT behavior of the nested Hyper-V VM, not the site-to-site VPN itself.
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hth
Marcin