The VM Series supports packet captures natively within the operating system:
Here is a link to more detailed information about how to run packet captures from the console or ui:
I also need to do this. Network Watcher works fine between Azure VMs, but it's not possible to add the extension on a Palo Alto VM. I see my traffic arrive on the PA, but need to trace it onwards to the Azure VM, but can't. It seems that I have correct NSG setup, but cannot get to the VM. Packet capture in PA is clunky with wireshark, I just need a simple view of what's happening.
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