Hi Om Yadav,
Thanks for reaching out to Microsoft Q&A.
IP address 168.63.129.16 is a virtual public IP address that is used to facilitate a communication channel to Azure platform resources. Customers can define any address space for their private virtual network in Azure. Therefore, the Azure platform resources must be presented as a unique public IP address. This virtual public IP address facilitates the following operations:
- Enables the VM Agent to communicate with the Azure platform to signal that it is in a "Ready" state.
- Enables communication with the DNS virtual server to provide filtered name resolution to the resources (such as VM) that don't have a custom DNS server. This filtering makes sure that customers can resolve only the hostnames of their resources.
- Enables health probes from Azure Load Balancer to determine the health state of VMs.
- Enables the VM to obtain a dynamic IP address from the DHCP service in Azure.
- Enables Guest Agent heartbeat messages for the PaaS role.
Reference document- https://zcusa.951200.xyz/en-us/azure/virtual-network/what-is-ip-address-168-63-129-16
IP address " 169.254.169.254" is related to IMDS (Azure Instance Metadata Service). IMDS is a rest API which is available at nonroutable IP address (169.254.169.254).
When you place virtual machine or virtual machine set instances behind an Azure Standard Load Balancer, you can use IMDS to retrieve metadata related to the load balancer and the instances.
Reference Document- https://zcusa.951200.xyz/en-us/azure-stack/user/instance-metadata-service?view=azs-2408
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