338 votesunder review · AdminAzure IaaS Engineering Team (Azure IaaS Engineering Team, Microsoft, Microsoft Azure) responded
The status of this item has been moved back to Under Review. We initially planned to move to VHDX support as part of our support for HyperV Gen2 VMs, but we ended up using the VHD format for Gen2 VMs as well. Some aspects of the Azure Infrastructure do not cleanly support VHDX OS or data disks. So this feature is dependent on some of these internal services being updated which is an ongoing process.Steve Vida commented
Are there any updates on when Gen2 Win10 VMs will be supported on Azure?