Starting with Veeam Backup & Replication v11, experimental support for restoring to Microsoft Azure as generation 2 VMs is available.
To enable generation 2 VM support, add the following value to the registry of the server where the Veeam Backup & Replication Console is run:
Key Location: HKLM\SOFTWARE\Veeam\Veeam Backup and Replication\
Value Name: AzureEnableGeneration2VMRestore
Value Type: DWORD (32-bit) Value
Value Data: 1
Once in place, restart the Veeam Backup Service.
This registry value can be added using the following PowerShell script: