Azure compute resources that are used to create and manage groups of heterogeneous load-balanced virtual machines.
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I interpret this as supporting the argument that not providing an --image flag (i.e. no auto scaling profile) or providing a capacity=0 is the equivalent to setting up an Availability Set. Given that you "must specify the fault domain count" the implication must be that CLI is defaulting to a fault domain count of 1 if you provide an --image flag.
You are correct; with no image flag, or just set capacity to zero, you can use VMSS as you do AvSet today (although with zone support and larger scale and better deployment latency and reliability). You are also correct CLI defaults to FDCount=1
I am still unclear whether setting fault domain count = 1 without providing zones is actually max spreading in a default zone.
FDCount=1 with no zones is max spreading. The current implementation limits instances to a zone, although it is expected that constraint will be changed in future updates. You should not take dependency that non-regional deployments will all land in the same zone.
Hope this helps.
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