SwapnilKadia
>>With the Legacy LAPS and Windows LAPS running side by side, can Windows LAPS take priority and manage passwords for local administrator account without issues?
Running "side by side" implies that you have both a legacy LAPS policy AND a new Windows LAPS policy applied to the same device. It only makes sense in that situation to configure the two policies to target different local admin accounts. If you do that, then yes both legacy LAPS and Windows LAPS will co-exist peacefully.
>>We currently have Legacy LAPS deployed to Hybrid Azure-AD devices via on-prem AD GPO.
>>If we switch to Windows LAPS can we run Legacy LAPS and Windows LAPS side by side for same local administrator account?
It is an administrative error to have both policies targeting the same account. If that situation occurs, then yes Windows LAPS will "take priority", which means that the OS will only accept password updates from Windows LAPS - password updates from legacy LAPS will be rejected.
>>Is there a step-by-step guide available to switch from Legacy LAPS to Windows LAPS where we using same local administrator account?
Not at this time. It's on my list.