You will be charged for the "full capacity of 128 GB" (P10/E10 disk), no matter how much data are stored on the disk.
As far as I know there is no "smalldisk image" available for Windows 10 in the Azure Marketplace.
There is an option to shrink the OS Disk size after the VM is deployed. But it needs to be done manually:
https://jrudlin.github.io/2019-08-27-shrink-azure-vm-osdisk
(If the reply was helpful please don't forget to upvote and/or accept as answer, thank you)
Regards
Andreas Baumgarten