Hello @Aashir Anwar ,
Welcome to the Microsoft Q&A platform. Happy to answer your question.
Like @Andreas Baumgarten said, azure doesn't backup or keep any additional copy of your VMs nor the disks. It is a user responsibility to configure backups and set a retention policy on azure VM. It is recommend to protect your VM using some of the azure services like Azure VM backup or the disaster recovery feature called Azure Site Recovery. This is also recommended by azure security center
Going forward, please consider following the azure security recommendations and follow best practices to avoid these kind of situations. For more details refer to Security Recommendations
We don't have any tools on azure or by microsoft that can decrypt or recover the VM from ransomware. However, when I looked up for Medusalocker Decrypt, i found many third party tools that talks about way to recover the windows VMs. Please check on internet
Please "Accept as Answer" if any of above helped so that, it can help others in community looking for remediation for the similar issues.