Worked with this cloudbase conf file. Set those 3 you mentioned to false and that worked. I'm using packer to build the image. The azure.use_config_drive looks like does not exist.
[DEFAULT]
username=Admin
groups=Administrators
inject_user_password=true
config_drive_raw_hhd=false
config_drive_cdrom=false
config_drive_vfat=false
bsdtar_path=C:\Program Files\Cloudbase Solutions\Cloudbase-Init\bin\bsdtar.exe
mtools_path=C:\Program Files\Cloudbase Solutions\Cloudbase-Init\bin\
verbose=true
debug=true
logdir=C:\Program Files\Cloudbase Solutions\Cloudbase-Init\log\
logfile=cloudbase-init.log
default_log_levels=comtypes=INFO,suds=INFO,iso8601=WARN,requests=WARN
logging_serial_port_settings=COM2,115200,N,8
mtu_use_dhcp_config=true
ntp_use_dhcp_config=true
local_scripts_path=C:\Program Files\Cloudbase Solutions\Cloudbase-Init\LocalScripts\
first_logon_behaviour=no
san_policy=OnlineAll
trim_enabled=True
metadata_report_provisioning_started=True
metadata_report_provisioning_completed=True
ephemeral_disk_volume_label="Temporary Storage"
netbios_host_name_compatibility=True
metadata_services=cloudbaseinit.metadata.services.azureservice.AzureService
plugins=cloudbaseinit.plugins.windows.rdp.RDPPostCertificateThumbprintPlugin,
cloudbaseinit.plugins.windows.azureguestagent.AzureGuestAgentPlugin,
cloudbaseinit.plugins.common.ephemeraldisk.EphemeralDiskPlugin,
cloudbaseinit.plugins.common.trim.TrimConfigPlugin,
cloudbaseinit.plugins.windows.sanpolicy.SANPolicyPlugin,
cloudbaseinit.plugins.common.mtu.MTUPlugin,
cloudbaseinit.plugins.windows.ntpclient.NTPClientPlugin,
cloudbaseinit.plugins.common.sethostname.SetHostNamePlugin,
cloudbaseinit.plugins.windows.createuser.CreateUserPlugin,
cloudbaseinit.plugins.common.networkconfig.NetworkConfigPlugin,
cloudbaseinit.plugins.windows.licensing.WindowsLicensingPlugin,
cloudbaseinit.plugins.common.sshpublickeys.SetUserSSHPublicKeysPlugin,
cloudbaseinit.plugins.windows.extendvolumes.ExtendVolumesPlugin,
cloudbaseinit.plugins.common.userdata.UserDataPlugin,
cloudbaseinit.plugins.common.setuserpassword.SetUserPasswordPlugin,
cloudbaseinit.plugins.windows.winrmlistener.ConfigWinRMListenerPlugin,
cloudbaseinit.plugins.windows.winrmcertificateauth.ConfigWinRMCertificateAuthPlugin,
cloudbaseinit.plugins.common.localscripts.LocalScriptsPlugin
And this other one for the unattend conf
[DEFAULT]
username=Admin
groups=Administrators
inject_user_password=true
config_drive_raw_hhd=false
config_drive_cdrom=false
config_drive_vfat=false
bsdtar_path=C:\Program Files\Cloudbase Solutions\Cloudbase-Init\bin\bsdtar.exe
mtools_path=C:\Program Files\Cloudbase Solutions\Cloudbase-Init\bin\
verbose=true
debug=true
logdir=C:\Program Files\Cloudbase Solutions\Cloudbase-Init\log\
logfile=cloudbase-init-unattend.log
default_log_levels=comtypes=INFO,suds=INFO,iso8601=WARN,requests=WARN
logging_serial_port_settings=COM2,115200,N,8
mtu_use_dhcp_config=true
ntp_use_dhcp_config=true
local_scripts_path=C:\Program Files\Cloudbase Solutions\Cloudbase-Init\LocalScripts\
metadata_services=cloudbaseinit.metadata.services.base.EmptyMetadataService
plugins=cloudbaseinit.plugins.common.mtu.MTUPlugin
allow_reboot=false
stop_service_on_exit=false
check_latest_version=false