Hi
where are you creating the custom image from - Azure or from Hyper-V On-Premises and uploading it?
It is supported as per the steps in the article below:
https://video2.skills-academy.com/en-us/azure/lab-services/approaches-for-custom-image-creation
One thing to be aware of "if" you have used Hyper-V - the disk needs to be a fixed-size disk and not dynamically expanding as this is not supported and will cause the deployment to fail.
Hope this helps,
Thanks
Michael Durkan
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