Can you provide details on why we need the loopback interface and what exactly that it doing? Additionally when we are talking about the local IP address that we are changing. Is that going to be the SVI IP of the VLAN I want to get out to AZURE? Why didn't you place all the ACL's into the configuration?
This is very good tutorial. However, why didn't you show if you can access the local machine on-prem from the Azure VM? The reverse communication is always necessary as well.