-If a gateway deployed prior to enablement of the new functionality exists in the subnet, you may see errors such as "For routes associated to subnet containing Application Gateway V2, please ensure '0.0.0.0/0' uses Next Hop Type as 'Internet'." when adding route table entries or "Failed to create security rule 'DenyAnyCustomAnyOutbound'. Error: Network security group <NSG-Name> blocks outgoing internet traffic on subnet <AppGWSubnetId>, associated with Application Gateway <AppGWResourceId>. This is not permitted for Application Gateways that have fast update enabled or have V2 Sku." when adding network security group rules to the subnet.
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