I launched a vm of zesty with:

 $ az group create --location=westus2 smgroup1
 $ az vm create -n smz1 -g smgroup1 
--image=Canonical:UbuntuServer:17.04-DAILY:latest \
     --ssh-key-value=$HOME/.ssh/id_rsa.pub --admin-username=smoser

Then ssh'd in and
$ echo "deb http://archive.ubuntu.com/ubuntu $(lsb_release -sc)-proposed main" 
| sudo tee /etc/apt/sources.list.d/proposed.list
deb http://archive.ubuntu.com/ubuntu zesty-proposed main

$ sudo apt-get update -q
...
Fetched 10.9 MB in 2s (4,872 kB/s)
Reading package lists...

$ sudo apt-get install cloud-init
Reading package lists... Done
Building dependency tree
Reading state information... Done
The following packages will be upgraded:
  cloud-init
1 upgraded, 0 newly installed, 0 to remove and 24 not upgraded.
Need to get 311 kB of archives.
After this operation, 8,192 B of additional disk space will be used.
Get:1 http://archive.ubuntu.com/ubuntu zesty-proposed/main amd64 cloud-init all 
0.7.9-153-g16a7302f-0ubuntu1~17.04.2 [311 kB]
Fetched 311 kB in 0s (362 kB/s)
Preconfiguring packages ...
(Reading database ... 64722 files and directories currently installed.)
Preparing to unpack .../cloud-init_0.7.9-153-g16a7302f-0ubuntu1~17.04.2_all.deb 
...
Unpacking cloud-init (0.7.9-153-g16a7302f-0ubuntu1~17.04.2) over 
(0.7.9-153-g16a7302f-0ubuntu1~17.04.1) ...
Processing triggers for ureadahead (0.100.0-19) ...
Setting up cloud-init (0.7.9-153-g16a7302f-0ubuntu1~17.04.2) ...
Leaving 'diversion of /etc/init/ureadahead.conf to 
/etc/init/ureadahead.conf.disabled by cloud-init'

$ dpkg-query --show cloud-init
cloud-init      0.7.9-153-g16a7302f-0ubuntu1~17.04.2

$ mkdir old
$ sudo mv /var/log/cloud-init* old
$ sudo mv /run/cloud-init/ old/
$ sudo mv /var/lib/cloud/ old/
$ sudo reboot


After reboot, I ran the sru-info collect script mentioned in bug opening and 
collected the attached output.

All went well.

** Attachment added: "logs and data collected from zesty-proposed run."
   
https://bugs.launchpad.net/cloud-init/+bug/1690430/+attachment/4921798/+files/proposed-updated.tar.gz

** Tags removed: verification-needed-zesty
** Tags added: verification-done-zesty

** Tags removed: verification-needed verification-needed-yakkety

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https://bugs.launchpad.net/bugs/1690430

Title:
  [Hyper-V] Advanced networking support on Azure

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