I have started over and made sure the sysprep image does not contain any antivirus, no outbound blocking, no security software of any kind. It errored out again...
{"code":"DeploymentFailed","message":"At least one resource deployment operation failed. Please list deployment operations for details. Please see https://aka.ms/DeployOperations for usage details.","details":[{"code":"Conflict","message":"{\r\n \"status\": \"Failed\",\r\n \"error\": {\r\n \"code\": \"ResourceDeploymentFailure\",\r\n \"message\": \"The resource operation completed with terminal provisioning state 'Failed'.\",\r\n \"details\": [\r\n {\r\n \"code\": \"DeploymentFailed\",\r\n \"message\": \"At least one resource deployment operation failed. Please list deployment operations for details. Please see https://aka.ms/DeployOperations for usage details.\",\r\n \"details\": [\r\n {\r\n \"code\": \"Conflict\",\r\n \"message\": \"{\r\n \\"status\\": \\"Failed\\",\r\n \\"error\\": {\r\n \\"code\\": \\"ResourceDeploymentFailure\\",\r\n \\"message\\": \\"The resource operation completed with terminal provisioning state 'Failed'.\\",\r\n \\"details\\": [\r\n {\r\n \\"code\\": \\"VMExtensionProvisioningTimeout\\",\r\n \\"message\\": \\"Provisioning of VM extension dscextension has timed out. Extension provisioning has taken too long to complete. The extension did not report a message. More information on troubleshooting is available at https://aka.ms/VMExtensionDSCWindowsTroubleshoot\\\\"\\r\\n }\r\n ]\r\n }\r\n}\"\r\n },\r\n {\r\n \"code\": \"Conflict\",\r\n \"message\": \"{\r\n \\"status\\": \\"Failed\\",\r\n \\"error\\": {\r\n \\"code\\": \\"ResourceDeploymentFailure\\",\r\n \\"message\\": \\"The resource operation completed with terminal provisioning state 'Failed'.\\",\r\n \\"details\\": [\r\n {\r\n \\"code\\": \\"VMExtensionProvisioningTimeout\\",\r\n \\"message\\": \\"Provisioning of VM extension dscextension has timed out. Extension provisioning has taken too long to complete. The extension did not report a message. More information on troubleshooting is available at https://aka.ms/VMExtensionDSCWindowsTroubleshoot\\\\"\\r\\n }\r\n ]\r\n }\r\n}\"\r\n },\r\n {\r\n \"code\": \"Conflict\",\r\n \"message\": \"{\r\n \\"status\\": \\"Failed\\",\r\n \\"error\\": {\r\n \\"code\\": \\"ResourceDeploymentFailure\\",\r\n \\"message\\": \\"The resource operation completed with terminal provisioning state 'Failed'.\\",\r\n \\"details\\": [\r\n {\r\n \\"code\\": \\"VMExtensionProvisioningTimeout\\",\r\n \\"message\\": \\"Provisioning of VM extension dscextension has timed out. Extension provisioning has taken too long to complete. The extension did not report a message. More information on troubleshooting is available at https://aka.ms/VMExtensionDSCWindowsTroubleshoot\\\\"\\r\\n }\r\n ]\r\n }\r\n}\"\r\n },\r\n {\r\n \"code\": \"Conflict\",\r\n \"message\": \"{\r\n \\"status\\": \\"Failed\\",\r\n \\"error\\": {\r\n \\"code\\": \\"ResourceDeploymentFailure\\",\r\n \\"message\\": \\"The resource operation completed with terminal provisioning state 'Failed'.\\",\r\n \\"details\\": [\r\n {\r\n \\"code\\": \\"VMExtensionProvisioningTimeout\\",\r\n \\"message\\": \\"Provisioning of VM extension dscextension has timed out. Extension provisioning has taken too long to complete. The extension did not report a message. More information on troubleshooting is available at https://aka.ms/VMExtensionDSCWindowsTroubleshoot\\\\"\\r\\n }\r\n ]\r\n }\r\n}\"\r\n }\r\n ]\r\n }\r\n ]\r\n }\r\n}"}]}