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Please, I urgently need to solve this issue. I have 2 .NET applications ( MVC .net 4.7 and React + core .net 6) which I want to deploy in the Azure under same domain because both share the same cookie value. Will Azure application solve this problem? Or will I need to go for Azure VM? Or is there a better way to deploy.

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You have to create 2 app service for both application(MVC .net 4.7 and React + core .net 6). For the domain you can use Traffic Manager for this with the help of Traffic Manager it will destitute your traffic between two application on the same domain.

https://docs.microsoft.com/en-us/azure/traffic-manager/quickstart-create-traffic-manager-profile