Error changing Virtual Machine Tier from Standard to Basic

When changing the Virtual Machine Tier on theConfigure tab of a VM from Standard to Basic you may see the following error message:

Failed to configure virtual machine <VM name>

Expanding the error details will show:

The server encountered an internal error. Please retry the request. The long running operation tracking ID was: <operation ID>.

This is a known issue which we expect to fix in the next 7 to 14 days. In the meantime, the workaround to deploy a Basic VM is to delete and re-deploy the existing VM to a Basic VM size.

Thanks,
Craig