I had created two Traffic manager profiles naming as Firstprofile, Secondprofile.Firstly Secondprofile configured with app service end point. Now Secondprofile added as Endpoint to Firstprofile (called nested profile) .While browsing the Firstprofile showing the error as follows "Error 404 - Web app not found"
2 Answers
The HTTP request you make to your Web App includes a 'Host' header containing the domain name used in the request. This must be recognized by the Web App. The standard Web App domain name (foo.azurewebsites.net) always works, any other domain names appear in the Web App's custom domains list.
When you add a Web App to Traffic Manager, the Traffic Manager profile's domain name (child.trafficmanager.net) is automatically added to the Web App's custom domains list. So far, so good.
There is a known issue in the Web App / Traffic Manager integration that when using nested Traffic Manager profiles, the domain name of the parent profile (parent.trafficmanager.net) is not added to the Web App custom domain list. This is why you're seeing 404 errors when trying to access the Web App via the parent profile.
As a workaround, you should configure a DNS record in a vanity domain (e.g. www.contoso.com) as a CNAME to parent.trafficmanager.net, and register the vanity domain name as a custom domain in your Web App. Access to the web app via the vanity domain should now work, and this will use the nested Traffic Manager profile as part of the DNS resolution.
Jonathan (Program Manager, Azure Traffic Manager)

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The problem is exactly what Jonathan Tuliani mentioned, but there is an alternative solution.
You need to add the parent Traffic Manager profile's domain name to the Web App.
Just go to Custom Domains and SSL -> Bring external domain -> enter the domain name e.g. tmdemo.trafficmanager.net. It will get allowed and everything works.
I just wrote a blog post about it: Nested Traffic Manager profiles

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