I was trying to setup backup on my Windows Server 2012 R2 Azure VM (A1 basic). Deployment of backup failed with "Unable to perform the operation as the VM Agent is not responsive." message from the Azure Operation Detail message. Checked the server and the VM Agent Service is running. I restarted it and it failed to deploy again. Any ideas about what to check next?
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According to your error log, it seems that agent does not response. Please check as the following way.
If you your VM is ARM VM, please check ProvisionVMAgent
status.
$vm=get-azurermvm -ResourceGroupName shuiwin -Name shui -DisplayHint Expand
$vm.OSProfile.windowsConfiguration.provisionVMAgent = $True
Update-AzureRmVM -ResourceGroupName $rg -VM $vm
If your VM is class VM, you could check this question.
If it does not work, please check this.

Shui shengbao
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