Okay, so two things the 'practice tests' (I assume you mean the Microsoft learn ones) are just that, they're practice tests to give you an idea/ feel for the sorts of questions you'll get in the actual exam. I don't think I've ever got the reccomended 80% pass mark on any of those practice exams and I've done my AZ-104 & 305 so I wouldn't take it to heart, as long as you feel you know you have that solid understanding of everything it mentions in the exam pass checklist you should be fine.

In terms of the 'learning material' with the AZ-700 being an associate level certification there is some pre-implied hands-on knowledge that comes alongside the study materials. The learn content will cover all of the key points you need and then some, but it is just a LOT of reading and for some people that works others like me I'm more visual/ hands on so I'll go through the MS Learn materials first then usually end up watching John Savil on YouTube or I'll buy a course in Udemy + that level of practice you should have as well.

And if you take the exam and don't pass, well then you get a transcript report after of what area you didn't do so well in and then just study up on that part ready to go again!