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Is IIS installed by default on a newly created Azure VM?
If not, do I need to download it, or is it somewhere inactive within the VM and can be activated?
IIS is not installed by default on Azure VM (unless you use custom image with IIS role installed).
IIS is role you need to eneble in Windows Server:
https://www.rootusers.com/how-to-install-iis-in-windows-server-2016/
Mustafa Toroman, Azure MVP