what went wrong with my sharepoint server deployment?

i have an azure subscription and i am trying to create a sharepoint server 2016 with an azure sql managed instance. i followed the steps from this article (https://docs.microsoft.com/en-us/sharepoint/administration/deploy-azure-sql-managed-instance-with-sharepoint-servers-2016-2019#environment) and here’s what i did:

1. create resource group sharepoint-server-deployment
2. add vnet sharepoint-server-deployment-vnet to sharepoint-server-deployment
3. add a second subnet subnet2 in addition to the default subnet on sharepoint-server-deployment-vnet
4. create a windows datacenter 2019 virtual machine vm1 within the default subnet
5. connect to vm1 through rdp and add the active directory feature in the add features wizard
6. promote vm1 to a domain controller and set up an ad forest
7. create windows datacenter 2019 vm vm2 in the default subnet
8. connect to vm2 through rdp and download sharepoint server 2016 from https://www.microsoft.com/en-us/download/details.aspx?id=57462
9. install prerequisites and install sharepoint server 2016
10. create an azure sql managed instance managedinstance in subnet2
11. run the following from the sharepoint management shell on vm2:

$farmcred = get-credential # i used my credentials for signing in to vm2
$dbcred = get-credential # i used the admin credentials for managedinstance
$farmpwd = read-host -prompt "enter farm password" -assecurestring # i used the password i would like for the farm to have
new-spconfigurationdatabase -databaseserver managedinstance -databasename sharepoint_config -farmcredentials $farmcred -databasecredentials $dbcred -passphrase $farmpwd -localserverrole SingleServerFarm

i am getting that the server does not exist or current user does not have access to connect to it, pls help!