Availability set and fault/update domains confusion

While creating set of VMs and assigning them the availability set pops up a question how many fault and update domains I want. I wonder why this question is there up as in theory what I always want is to have the highest redundancy, which means the biggest number of possible fault and updated domains. Do I understand this properly or there are disadvantages if for example for the 2 VMs setup I would select 3 fault domains?

I am confused as well why azure portal allows maximum 5 update domains while it is possible to have up to 20 when doing deployment via resource manager.

submitted by /u/bibisajka
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