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It is not recommended to send Diagnostic Settings to the same Log Analytics workspace that your Application Insights resource is based on due to potential duplicate telemetry. This can lead to recursive issues if the audit logs contain audits of write events.
For more details, you can refer to the Diagnostic settings in Azure Monitor - Requirements and limitations.
By following these guidelines, you can avoid potential issues with duplicate telemetry and ensure accurate monitoring and auditing.
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Deepanshu