"Security type of VM is not compatible with the security type of attached OS Disk."
Also the logs will show the following error:
"Failed
creating virtual machine azu-n2wstest (original: azu-n2wstest). Error:
(BadRequest) Security type of VM is not compatible with the security
type of attached
OS Disk.
Code: BadRequest
Message: Security type of VM is not compatible with the security type of attached OS Disk. (HttpResponseError)"
This is because version 4.0/4.1 does not yet support Recovery of VM's That have enabled Trusted Launch as the security type. Please see below.
We are currently working on adding support for these VM types.