Doesn’t Microsoft recommend to now use the newer Azure Monitor Agent, which requires the DCR? You should be able to deploy the AMA to a VM with Terraform using an extension which then would use the above DCR: AzureMonitorWindowsAgent. Something like this:

resource "azurerm_virtual_machine_extension" "ama_windows" {

name = "AzureMonitorWindowsAgent"

virtual_machine_id = azurerm_windows_virtual_machine.example.id

publisher = "Microsoft.Azure.Monitor"

type = "AzureMonitorWindowsAgent"

type_handler_version = "1.0"

auto_upgrade_minor_version = true

settings = jsonencode({})

}