Why was there a new resource group for network when we created a new resource group?

Hi Sreevidya, the additional resource group created is a Network Watcher resource group. This is created automatically when you created the virtual machine as the template includes provisioning of a virtual network. https://docs.microsoft.com/en-us/azure/network-watcher/network-watcher-create This is by design as it allows you to diagnose network level problems through the network watcher service