You can't resize a VM size that has a local temp disk to a VM size with no local temp disk and vice versa. The only combinations allowed for resizing are: VM (with local temp disk) -> VM (with local temp disk); and VM (with no local temp disk) -> VM (with no local temp disk). Reference: https://learn.microsoft.com/en-us/azure/virtual-machines/azure-vms-no-temp-disk https://learn.microsoft.com/en-us/azure/virtual-machines/sizes/resize-vm