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: HKLM\SOFTWARE\Veeam\Veeam Backup and Replication\
Once in place restart Veeam Backup Service.