Here’s the breakdown of permissions for each user regarding the virtual machine, VM1:

• User1: Is assigned Role1, which is scoped to the management group MG1. This role applies to all resources under MG1, including VM1. Although Role1 grants broad virtual machine permissions (*/\*), it also includes a notActions entry that explicitly denies the delete action. In Azure RBAC, a deny permission always overrides an allow permission. Therefore, User1 cannot delete VM1.
• User2: Is assigned both Role1 (at the MG1 scope) and Role2 (at the RG1 scope). While Role2 allows all virtual machine actions, Role1's explicit denial of the delete action still applies to User2. The deny (notActions) from Role1 takes precedence over the allow (actions) from Role2. Consequently, User2 cannot delete VM1.
• User3: Is assigned only Role2, which is scoped to the resource group RG1. Role2 grants all virtual machine actions (Microsoft.Compute/virtualMachines/*) and has no notActions to restrict permissions. Since User3 has no assignments that deny deletion, User3 can delete VM1.

Microsoft Learn. (n.d.). Understand how Azure RBAC determines if a user has access to a resource. Retrieved from https://learn.microsoft.com/en-us/azure/role-based-access-control/overview-access-control#how-azure-rbac-determines-if-a-user-has-access-to-a-resource

Reference details: The section "Access evaluation" explains that Azure first checks for any deny assignments, and if one exists for the action, access is blocked, even if a role assignment grants access.

Microsoft Learn. (n.d.). Understand Azure role definitions. Retrieved from https://learn.microsoft.com/en-us/azure/role-based-access-control/role-definitions#notactions

Reference details: The "NotActions" section states, "NotActions specify the management operations that are excluded from the allowed Actions. An effective permission is computed by subtracting the NotActions operations from the Actions operations."

Microsoft Learn. (n.d.). What is Azure role-based access control (Azure RBAC)?. Retrieved from https://learn.microsoft.com/en-us/azure/role-based-access-control/overview#scope

Reference details: The "Scope" section describes how permissions are inherited from parent scopes. "When you assign a role at a parent scope, those permissions are inherited by the child scopes." This confirms that Role1 assigned at MG1 applies to VM1.