I understand that the ASR is a DR option for on-prem sites. But looks like the workflow is good and fits for the Azure based sites as well. Do you know if there is a way to enable ASR option for the Azure bound VMs? If so can someone explain the steps to enable it?
No. Currently it is not possible. You can only protect virtual machines that are running in an environment away from Azure. You can failover machines from on-prem site and have it running in Azure. You can then use Azure site recovery to migrate/failover to a different site.