Does azure monitor's continuous performance monitoring and sending the logs to Workspace have impact on the server at all? Looked for documentation around this and could not find any. Any information about how it internally works on sending the information or links would be appreciated.
If you have Azure Monitor agents installed, it will collect the data as a process of the operating system.
Normally, the agent will consume relatively small share of the VM performance such as CPU, memory and disk. However, the performance consumption is based on the different types of the data collecting. As some solutions will be relied on the agent to collect the data, it is likely that the more solutions you are using, the more VM performance resource will be consumed.
Regarding " continuous performance monitoring and sending the logs to Workspace", the agent will only retrieve the data from the VM such as metrics and logs. It just uses little resources.