Hi,

For Windows Azure DB monitoring i have installed the Windows Azure Database MP and configure one Agent managed Server as Watcher node. Such Agent managed Server has Proxy enable in SCOM and the Public IP of Watcher node already allowed in Azure DB Firewall in Azure Portal. we are able to view the state and performance of Azure DB but while exploring the health explorer of Watcher node all monitors showing as not monitored and health state of Watcher node is critical as below . please suggest for solution.. on Watcher node Internet is working...

A couple of things...

First, how long has the SCOM Agent been installed on the Watcher Node? And, how long has it been since you've enabled the Agent Proxy setting for that specific system? There can be a delay on discovery, etc. depending on timing. 

Second, Do you have all the required Management Packs imported? For example, you could have the SCOM Agent deployed in the environment, but have no applicable MPs imported (i.e. Windows Server); and only have the Azure MP that connects/works with Azure and not on-prem.

Prior to using the server as a Watcher Node, did you receive monitoring data from it?