ARM documents to deploy diagnostic policies for specific resources
Please find my blog post with additional information here:
https://markusmeyer.hashnode.dev/configure-azure-diagnostic-settings-with-azure-policies
az deployment sub create --location westeurope --template-file .\Policy.json --parameters "@Policy.parameters.json"
New-AzDeployment -Name "diagPolicies" -location "West Europe" -TemplateFile .\Policy.json -verbose -TemplateParameterFile .\Policy.parameters.json