From a recent change in the Microsoft Azure Portal, when you try to create a Virtual Machine in Azure there are two options that are presented.
Virtual Machine (Classic)
In this post lets see the difference between the both.
The virtual machines are the new IaaS v2 virtual machines that could be created using the Azure Resource Manager (ARM) features. Microsoft recommends all new virtual machines to be created using this.
The virtual machines (classic) are the v1 machines which were created using the old Azure portal which does not include capabilities from ARM.
The below article describes the detailed functionalities of ARM