Hi,
Can any one help me from where to download the latest VM for AX 7 ?
Open your LCS project for AX 7, create a new environment and choose a local one. It redirects you to Connect, where you can also go directly.
Of course, you must be authorized to download it.
I don’t have option to create AX 7 project in LCS. May I know why is that
Try connect.microsoft.com/…/Downloads, you will have to click Login at the upper right hand corner, select VM in the drop down. Latest is Nov/2016 version.
Are you authorize to use AX 7? If so, how? Are you a customer who bought a license? Or are you an implementation partner?
If you’re authorized, make sure you’re using the right AAD when logging into LCS.
If you don’t have any rights to use it, then you shouldn’t be surprised that you don’t see it.
Im using Customersource login. But I can use Kwen link which is mentioned above.
That’s probably the problem. I assume your CustomerSource login is a Microsoft Account, not the Office 365 account associated with your AX 7 license.
What should be done to get Office 365 account associate to download ax 7 ?
You should go to the wiki, open Getting started home page and read the Onboarding section.
Martin, is the On-premise version VHD to be released soon? I heard it would come out a couple of weeks ago, though.
Where do you use VHDs now if not on premises? 
I think you’re talking about the on-premise deployment option of production environments (instead of running them in Microsoft Azure subscription, which was the only option before), but it’s a completely different topic and it doesn’t involve any VHD files.