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User1 can delete VM1.
User1: Only has Role1.
Role1: Explicitly denies delete action on virtual machines.
Conclusion: No. User1 cannot delete VM1.
User2 can delete VM1.
User2: Has both Role1 and Role2.
Role1: Explicitly denies delete action on virtual machines.
Role2: Allows all actions on virtual machines, including delete.
Since Role2 allows deletion and there are no conflicting "NotActions" in Role2, User2 can delete VM1.
Conclusion: Yes. User2 can delete VM1.
User3 can sign in to VM1 by using Azure AD credentials: NO