All VMs seems to be running healthy and there are no extensions with issues, but the VM still reports status failed.
This is usually because the Azure have a glitch, which means it happens uncontrolled and for no reason, but updating the VM configuration solves the glitch, unless it really is something that went wrong. So what you can do, is to add a tag, which will update the VM configuration and see if it reverts back to status running.
Unless you have use for the tag, it can be deleted afterwards. Maybe make a key with a value that states it was created to repair the glitch.