Is Azure Policy capable of automatic remediation?

Azure Policy is indeed capable of automatic remediation. This feature allows organizations to enforce compliance with defined policies by automatically correcting resources that are non-compliant. When Azure Policy is configured with a policy definition that includes a remediation task, the system can actively monitor resource compliance and take predefined actions to bring resources into compliance automatically when they veer from the established rules.

For example, if a policy defines that virtual machines must have a certain tag, Azure Policy can automatically apply the required tags to any virtual machines that do not have them. This automatic remediation capability significantly aids in maintaining governance and compliance across Azure environments without requiring manual intervention.

The other options suggest limitations or incorrect functionalities of Azure Policy. The claim that it only remediates under specific conditions or limitations is not accurate; Azure Policy operates consistently in monitoring and remediating non-compliant resources in accordance with the policies defined by the organization's requirements.