To capture the image of Azure Virtual Machine, you should follow the steps mentioned at the link –
This link states to select “Quit” option while performing sysprep so that while provisioning VM based on captured image, it won’t run into timed out error. This is perfectly fine. However what if even after selecting Quit during sysprep you run into Provisioning timed out error while creating VM based on captured image?
I recently ran into such issue. I had selected Quit option during sysprep, and then I captured the VM image and when I provisioned VM based on this captured image, I got error as “Provisioning Timed Out”.
However interesting fact was that, I was able to make RDP to the machine and all installed application was working fine on it. Now if I restart this captured image based Azure VM from Management Portal, VM got into Running status on portal. This was one of the workaround however not a permanent solution.
Then I raised a support ticket with Microsoft and findings were awesome.
Recently in Feb 2014, Azure Team technical blog posted that, VM agent is now by default installed on Azure virtual Machines. And guess what, VM agent was the problem behind Provisioning timed out error for Azure VM.
This new VM agent was installed on Azure VM that I was using to capture the image. Then when I created a new virtual machine based on captured image by default VM agent tries to get installed again, but as it is already installed may be monitoring servers will never receive the status as “installation complete” which they are waiting for and hence after certain time interval status of VM becomes Provisioning Timed Out.
To fix this problem of Provisioning Timed Out, while creating VM’s remember to uncheck the option “Install the VM agent”.
That’s it you are done and problem of Provisioning timed out error resolved.
MSDN link here -