An Azure service that is used to collect, analyze, and act on telemetry data from Azure and on-premises environments.
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AMA based VM monitoring with DCRs is supported for both Azure VMs and Arc enabled servers. The warning does not by itself mean AMA+DCR is unsupported. In your case, the issue is more likely that the machine is not correctly associated with a VM Insights DCR, the DCR doesn’t include performance counters or the old VMInsights legacy solution is still present in the workspace.
Don't forget that the dependency agent is only needed for Map and not for guest performance. So try to verify Heartbeat if it shows only Azure Monitor Agent and if the server is listed under the DCR resources blade and the DCR and Log Analytics workspace are in the same region and then remove the old VMInsights legacy solution if you no longer use MMA.