Exam DP-300 topic 1 question 54 discussion

Snapshot and Bi-directional replication types are supported. Merge replication, Peer-to-peer replication, and updatable subscriptions aren't supported. Transactional Replication is available for SQL Managed Instance with some constraints:

I agree its C - Azure VM. Careful on this one - Azure SQL MI does support "transactional replication", however it does not support the subset feature of "merge replication": https://learn.microsoft.com/en-us/azure/azure-sql/database/replication-to-sql-database?view=azuresql#types-of-replication

C. SQL Server on Azure Virtual Machines Here's why this option is suitable: SQL Server on Azure Virtual Machines: This option is essentially IaaS (Infrastructure as a Service), which means you get a full virtual machine with full control over the SQL Server instance. It supports SQL Server features just like an on-premises server would, including merge replication. This allows for a smoother migration of databases that rely on specific SQL Server features that are not supported by PaaS (Platform as a Service) options. The other options have limitations regarding merge replication: A. Azure SQL Edge: This service is designed for edge computing scenarios and IoT devices, not for general database hosting. B. Azure SQL Database: This is a PaaS offering that does not support SQL Server's merge replication. D. Azure SQL Managed Instance: While it is the PaaS offering that comes closest to the full capabilities of SQL Server, it still does not support merge replication as of my last update in April 2023.

https://learn.microsoft.com/en-us/azure/azure-sql/database/replication-to-sql-database?view=azuresql-db#supported-configurations. "Peer-to-peer transactional replication and merge replication are not supported" - so the answer is correct, we need to use VMs