Stephen,
I think the issue in your comment above is that cloud-init on the first boot 
wrote an entry into /etc/fstab for the swap partition.  Then you upgraded 
rebooted.  The /etc/fstab entry for swap was still present and systemd mounted 
swap. Then, when cloud-init went to repartition, the disk was busy (with swap) 
and could not get it done.

Could you attach *that* /var/log/cloud-init.log ?

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https://bugs.launchpad.net/bugs/1686514

Title:
  Azure: cloud-init does not handle reformatting GPT partition ephemeral
  disks

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