Hi Kyle James
When migrating from an unmanaged disk to a managed disk in Azure, the managed disk will, by default, be created with the same size as the source unmanaged disk, if you are only using 20 GB of the 1023 GiB disk, and you want to reduce the size of the managed disk to something like 128 GB, you can do this but not directly during the migration.
For more information:
https://learn.microsoft.com/en-us/azure/virtual-machines/windows/convert-unmanaged-to-managed-disks
https://learn.microsoft.com/en-us/azure/virtual-machines/unmanaged-disks-deprecation
Please let me know if you have any quires or Steps to Reduce Disk Size During Migration, I am glade to assist.