You have a virtual machine named VM1 that runs Windows Server 2016 (AZ-900)

Correct answer: B) Azure Monitor.
Azure Monitor is the service you should use to view service failure notifications that can affect the availability of your Azure Virtual Machine (VM1) running Windows Server 2016 in the East US Azure region.

Azure Monitor is a comprehensive monitoring service in Azure that provides the following capabilities:
Collect and analyze telemetry data from your Azure resources, including virtual machines, to identify and diagnose issues.
View service health notifications, which include information about any ongoing service issues or outages that may impact the availability of your Azure resources.
Receive alerts when certain conditions are met, such as when a virtual machine's performance degrades or when a service disruption occurs.
The other options are not the correct answers:

Azure Service Fabric is a distributed systems platform used to build and deploy microservices and containerized applications, and it is not the correct service for viewing service failure notifications.
Azure Virtual Machines is the service that manages your virtual machines, but it does not provide the monitoring and notification capabilities you need.
Azure Advisor is a service that provides personalized recommendations to optimize your Azure resources, but it does not directly handle service failure notifications.
Therefore, Azure Monitor is the Azure service you should use to view service failure notifications that can affect the availability of your Azure Virtual Machine (VM1) running Windows Server 2016 in the East US Azure region.