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Deployment of 2012R2 Failing

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Hi, 

When trying to deploy a new 2012 R2 virtual machine through the Azure Portal, the deployment hangs for a couple of hours on processing the VMDiagnosticsSettings extension. 

Going through the Audit logs, the only error is the Operation: Write Deployments with the message:

 
statusCode:Conflict

statusMessage:{"status":"Failed","error":{"code":"ResourceDeploymentFailure","message":"The resource operation completed with terminal provisioning state 'Failed'.","details":[{"code":"VMExtensionProvisioningTimeout","message":"Provisioning of VM extension 'Microsoft.Insights.VMDiagnosticsSettings' has timed out. Extension installation may be taking too long, or extension status could not be obtained."}]}}


The steps are quite straightforward, 

New -> Virtual Machines -> Windows Server 2012 R2 Datacenter

Deployment model: Resource Manager

DS2 Standard with all defaults set.

Does anyone have any ideas?

Thanks,

Alex



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