Restrictions on the number of VMs should apply to VMs within Environments
Environments deployed within DevTest Labs from ARM templates held in a repository do not seem to be restricted by the "Virtual machines per user" or "Virtual machines per lab" settings.
This means that in labs with environment templates containing VMs, users can deploy as many VMs as they wish, even if number of VM restrictions are set on the lab.
These restriction settings should apply to VMs within Environments too.
Thanks for the feedback. We have this feature in our backlog and needs to be prioritized with other features. If you would like to see this feature sooner, please vote for it.