Yes. You will have to create a new image builder and install your applications on the new OS.
We also introduced Elastic fleets. Elastic fleets lets you stream applications to your end users without managing images or configuring scaling. If your applications are portable, this could be a good fit.
Yes, given that Server 2012 R2 is going on ten years old. Is there a reason you've remained on 2012 R2?
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