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Can you replicate DFS share into Azure from On Prem? If so which storage do i need to do it?

Would it be easier to setup a virtual machine in Azure and use DFS-R to take advantage of it over a VPN tunnel?

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Well, you can replicate it to Azure. But you would want to ship drives to Azure for such an amount of Data. Also, you can't have more then 64 data disks for a vm, so that's about ~63.9tb of data for a single VM maximum.

I'm not sure what's the use-case for 100tb on dfs, thou.

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