Can I achieve above tasks by using Azure Deployment Groups?
Of course sure. Azure virtual machine
just the VM which hosted by Azure, there's no more difference with the normal VM.
To deploy application to Azure VMs through IIS tasks and azure devops deployment group, you must pay attention to below 2 prerequisites:
1) As normal, VM is a separated machine. In order to combine them into Azure Devops and use them with CI/CD, to be precise, let the Deployment group
manage to these virtual machine, you need to run script to register these VMs to VSTS deployment group.
2) Also, to deploy application to VMs via IIS, you need also ensure that these VMs web servers configured with IIS.
Above 2 is what mentioned in the doc you shared.
Our lab published a blog which describe the very detailed steps on how to Deploying to Azure VM using Deployment Groups. You can follow it to continue your configuration in VSTS pipeline.
Since it is very detailed, I would only point some key to you:
- 1 To configure
Deployment Group agent
on each of the virtual machines, firstly, please use Azure Resource Group Deployment
task with Configure virtual machine deployment options
action and enable prerequisites as Configure with Deployment Group agent
:

Note:
Here you must add 2 phases since Azure Resource Group Deployment
task need run with agent job, and IIS web app manage/deploy
task run with deployment group job

These are the basic steps which could help you achieve what you want.