Any specific reason on using 32-Bit OS? Will recommend to move to 64 bit for leveraging the VM Extensions.
Currently there's no x86 architecture VM Azure Agent, so there's no way to have an Azure Agent that could be used for monitoring and troubleshooting scenarios. Azure is able to handle 32 Bit generalized images, however we cannot rely on the Provisioning Agent since this will only work on 64 Bit machines. The official documentation also has mention of x64 version.
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