Problems: 

• User creating MCS Catalog with functional level 7.9 or newer and WBC default settings will encounter error when deploying to Azure.

• User is not able to create anything that is related to PVD for Microsoft Azure.

Exception Detail:

Terminating Error:
An error occurred while preparing the image. Ensure that the hypervisor has sufficient resources (such as memory) for additional machines.
Stack Trace:
   at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeTask.CheckForTerminatingError(SdkProvisioningSchemeAction sdkProvisioningSchemeAction)
   at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeTask.WaitForProvisioningSchemeActionCompletion(Guid taskId, Action`1 actionResultsObtained)
   at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeCreationTask.StartProvisioningAction()
   at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeCreationTask.RunTask()
   at Citrix.Console.PowerShellSdk.BackgroundTaskService.BackgroundTask.Task.Run()
 
DesktopStudio_ErrorId : ProvisioningTaskError
ErrorCategory : NotSpecified
ErrorID : FailedToStartImagePreparationVm
TaskErrorInformation : Terminated
InternalErrorMessage : Error powering on machine

Option 1

Select functional level lower than 7.9 when creating catalog in Microsoft Azure.

Option 2

User can still use 7.9 or newer catalog version and have Write Back Cache disabled. 

Instructions

1. Pick a VHD for the master image and Click Next
   

2. Uncheck Memory allocated to cache and Disk Cache size to diskable Write Back Cache.
   

3. Click next after unchecking those boxes
   

Problem Cause

Write Back Cache is turned on by default for catalog 7.9 or newer.  The way Microsoft validates VHD size has changed recently and that surfaced up the bug which causes disk size mismatch between current size field in VHD footer and the actual blob size.