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Hi Venkata,
You are correct when you said that a virtual machine scale set can be deployed across multiple availability zones.
But a host group can only be deployed to a single availability zone. Since you need to achieve high availability, you need to create one host group per availability zone. The host group and the scale set must be using the same availability zone.
Since you need three host groups, you need to deploy 3 VMSS as well. One for each host group.
Please let me know if you have any further questions.
Thank you.
