Thank you for your question and reaching out. I can understand you are having query\issues related to Azure sysprep of Image.
To generalize your Windows VM, follow these steps:
Sign in to your Windows VM.
Open a Command Prompt window as an administrator.
Delete the panther directory (C:\Windows\Panther).
Then change the directory to %windir%\system32\sysprep, and then run:
sysprep.exe /oobe /generalize /mode:vm /shutdown
The VM will shut down when Sysprep is finished generalizing the VM. Do not restart the VM.
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