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From logs I think the image runs correctly. Do you visit the endpoint from the azure VM or from another machine?

I have to add port 3000 to VM then it ran fine.Just 1 question out of curiosity- why bentoml service runs only on 3000 port by default?

3000 is just a default. You can change this port using a configuration file. details at: https://docs.bentoml.org/en/latest/guides/configuration.html#http