An Azure service that enables hosting Domain Name System (DNS) domains in Azure.
Azure Traffic Manager operates purely at the DNS level and never terminates TLS traffic or sees certificates. Effectively, the trafficmanager.net certificate is not used by browsers connecting to your custom domain and, by implication, the degraded status is directly related to why your renewal or monitoring is failing.
Traffic Manager only returns DNS records that direct clients to your backend endpoints. The TLS certificate presented to the browser comes directly from the underlying backend endpoint, such as an Azure App Service.
You do not need a separate custom endpoint just for trafficmanager.net. The warning is likely caused by an old or orphaned certificate binding associated with a *.trafficmanager.net hostname or by an invalid validation configuration. You only need the managed certificate for your actual custom domain, such as your myapi.*, bound to the backend resource.
A Degraded profile means that its health probes are failing. Certificate authorities such as DigiCert may also rely on public HTTP validation or reachability checks. If Traffic Manager or the backend blocks port 80 or 443, or if the health probe is incorrectly configured, such as probing HTTP instead of HTTPS on port 443, certificate renewal validation can fail while the Traffic Manager profile remains degraded.
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hth
Marcin