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  • Angelie Soto thinks this is interesting:

It is important to understand that VNet peering is between two Virtual Networks. There is no derived transitive relationship across the peerings. If you peer VNetA to VNetB and then peer VNetB with VNetC, VNetA is not peered to VNetC. Figure 4-38 shows you a functional architecture of this and describes how VNetA is not peered to VNetC.

From

Cover of Exam Ref 70-533 Implementing Microsoft Azure Infrastructure Solutions

Note

The Vnet peering is between two Vnets within the same region and there is not derived relationship between Vnets even if they are in the same region.