If I deploy a web app (formerly known as an Azure WebSite) to an App Hosting Plan in Azure with a couple of instances (scale = 2) will the load balancer in front of the inst
Yes, Azure Web Apps monitors the health of the workers by making internal requests to it and verifying that they're healthy.
However, we don't check status codes that the web app returns to user requests (like 500, etc) since that could easily be an app specific issue rather than a problem with the machine.
So the answer you're looking for is: We continuously test whether or not the instances (VMs) are healthy and take them down if they're not. However, those tests do not rely on error codes the customer's site returns