You have an Azure Compute Gallery named Gallery1 and a VM named Template1 that contains custom apps and settings. You will deploy Azure Virtual Desktop session hosts using a custom VM image that must: be stored in Gallery1, be based on Template1, and ensure each new session host has a unique computer name and identifier. In the Azure portal, what action should you take to create this custom image?

Capturing a generalized virtual machine image from Template1 is the correct action because generalization prepares the VM for deployment as a template by removing unique system-specific information (like the computer SID) using Sysprep. This ensures that each new session host created from this image will have a unique computer name and identifier, which is a key requirement for multiple instances in a pooled environment like Azure Virtual Desktop. The image will then be stored in Gallery1. Creating a new VM application definition is for managing applications within a gallery, not for creating a base VM image. Creating a new VM image definition defines the image properties within the gallery but doesn't create the image itself from an existing VM. Capturing a specialized virtual machine image would retain the unique system-specific information of Template1, making it unsuitable for deploying multiple, distinct session hosts.