This bug is believed to be fixed in cloud-init in 18.1. If this is still
a problem for you, please make a comment and set the state back to New

Thank you.

** Changed in: cloud-init
       Status: Fix Committed => Fix Released

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  cloud-init doesn't yet support azure vm preprovisioning

Status in cloud-init:
  Fix Released

Bug description:
  There is a new feature, in azure, to have a VM go through provisioning
  twice. The first time will simply report ready to the fabric, then
  poll IMDS for the new ovf-env.xml. Once it comes through, we go
  through the process as normal.

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