When you create App in Azure it is isolated like D:\home . It is called Sandbox environment.
As I have read some document it suggest that it is not docker container and VM. Is it possible to create such isolation manually in windows ?
I do not believe there is an application to replicate the app service on your machine. However, if you were to publish your application in an container (ex Docker) you can replicate some of the functionality of the wep app on your machine. For this you should use a containerized web app.
You can replicate - Machine overall behavior - Network firewall settings
You cannot replicate - Azure Sandbox machine limits (ex max threads, max connections ect) - Performance level (as this is app service plan specific)