Hi Yosuva,
Thank you for posting here.
The "TFS Online" you mean is Visual Studio Team Service/Visual Studio Online?
The logon account is a windows service account for your build agent. You could use a domain account and "NT AUTHORITY\NETWORK SERVICE" account.
1.Whether log on account should be Windows AD account or SQL server logon account.why i'm asking this is we are using TFS build agent only for our cpurpose.
The logon account must have the permission to deploy your cube.
2.Whether log on account should have VM access to our local development server or not.
3.Is it mandatory to have admin rights to log on account.
The VM is for cube deployment? If so, the logon account should have permission to access this VM. It's not mandatory to have admin rights but I suggest that you set logon account as an administrator for your VM.
For more information about build agent:
https://www.visualstudio.com/en-us/docs/build/agents/windows
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