Azure: Error Deploying VM from Generalised Image (Image Undeployable)

Question

I've been trying to use Powershell (following MS docs) to deploy a new VM from a generalised image but I keep getting this error.

New-AzureRmVM : Long running operation failed with status 'Failed'.
ErrorCode: OSProvisioningClientError
ErrorMessage: OS provisioning for VM 'MyVM' failed. Error details: This installation of Windows is undeployable. Make sure the image has been properly prepared (generalized).
Instructions for Windows: https://azure.microsoft.com/documentation/articles/virtual-machines-windows-upload-image/ 
StartTime: 22/03/2017 10:06:24
EndTime: 22/03/2017 10:10:37
OperationID: 549f97d1-ca39-4bc5-bd6c-65e37a8d398f
Status: Failed
At C:\Visual Studio Projects\Deployment\VmSetup.ps1:97 char:1
+ New-AzureRmVM -ResourceGroupName $rgName -Location $location -VM $vm
+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    + CategoryInfo          : CloseError: (:) [New-AzureRmVM], ComputeCloudException
    + FullyQualifiedErrorId : Microsoft.Azure.Commands.Compute.NewAzureVMCommand

Trouble is that I did run a sysprep and generalised the image.

Code          : OSState/generalized
Level         : Info
DisplayStatus : VM generalized
Message       : 
Time          : 

I'm also unable to start the VM again because it's told me it's generalised.

Failed to start virtual machine 'OtherVM'. Error: Operation 'start' is not allowed on VM 'OtherVM' since the VM is generalized.

Image saving script:

#Script to save image
$vmName = "OtherVM"
$rgName = "MyResourceGroup"
#Stop-AzureRmVM -ResourceGroupName $rgName -Name $vmName
Set-AzureRmVM -ResourceGroupName $rgName -Name $vmName -Generalized
$vm = Get-AzureRmVM -ResourceGroupName $rgName -Name $vmName -Status
$vm.Statuses

#Save VM Image
Save-AzureRmVMImage -ResourceGroupName $rgName -Name $vmName `
-DestinationContainerName "generalisedimages" -VHDNamePrefix "gen" `
#-Path "C:\VMTemplate\VmTemplate.json"
Write-Output "Imaged saved."

And the deploy script.

#
# VmDeploy.ps1
#
#Sign into Azure account
#Login-AzureRmAccount

# Name of the virtual machine. This example sets the VM name as "myVM".
$vmName = "MyVM"

#Set resource group and subnet name
$rgName = "MyResourceGroup"
$subnetName = "default"
$singleSubnet = New-AzureRmVirtualNetworkSubnetConfig -Name $subnetName -AddressPrefix 10.0.0.0/24

#Set location and vNet name
$location = "UK South"
$vnetName = "{0}-vnet" -f $rgName
$vnet = New-AzureRmVirtualNetwork -Name $vnetName -ResourceGroupName $rgName -Location $location -AddressPrefix 10.0.0.0/16 -Subnet $singleSubnet

#Create public IP
$ipName = "{0}-ip" -f $vmName
$pip = New-AzureRmPublicIpAddress -Name $ipName -ResourceGroupName $rgName -Location $location -AllocationMethod Dynamic

#Create NIC
$nicName = "{0}-nic" -f $vmName
$nic = New-AzureRmNetworkInterface -Name $nicName -ResourceGroupName $rgName -Location $location -SubnetId $vnet.Subnets[0].Id -PublicIpAddressId $pip.Id

#Create network security group and allow RDP
$nsgName = "{0}-nsg" -f $vmName
$rdpRule = New-AzureRmNetworkSecurityRuleConfig -Name Rdp -Description "Allow RDP" `
    -Access Allow -Protocol Tcp -Direction Inbound -Priority 110 `
    -SourceAddressPrefix Internet -SourcePortRange * `
    -DestinationAddressPrefix * -DestinationPortRange 3389
$httpRule = New-AzureRmNetworkSecurityRuleConfig -Name Http -Description "Allow HTTP" `
    -Access Allow -Protocol Tcp -Direction Inbound -Priority 120 `
    -SourceAddressPrefix Internet -SourcePortRange * `
    -DestinationAddressPrefix * -DestinationPortRange 80
$httpsRule = New-AzureRmNetworkSecurityRuleConfig -Name Https -Description "Allow HTTPS" `
    -Access Allow -Protocol Tcp -Direction Inbound -Priority 130 `
    -SourceAddressPrefix Internet -SourcePortRange * `
    -DestinationAddressPrefix * -DestinationPortRange 443
$nsg = New-AzureRmNetworkSecurityGroup -ResourceGroupName $rgName -Location $location -Name $nsgName -SecurityRules $rdpRule, $httpRule, $httpsRule

#Get completed virtual network
$vnet = Get-AzureRmVirtualNetwork -ResourceGroupName $rgName -Name $vnetName

#Uri of VM image
$imageURI = "https://*******.blob.core.windows.net/system/Microsoft.Compute/Images/generalisedimages/genosDisk.86g419f6-0de6-4331-hi54-32hse8de6bd4.vhd"
# Enter a new user name and password to use as the local administrator account 
# for remotely accessing the VM.
$cred = Get-Credential
# Name of the storage account where the VHD is located. This example sets the 
# storage account name as "myStorageAccount"
$storageRgName = $rgName
$storageAccName = "mystorage"

# Size of the virtual machine. This example creates "Standard_D2_v2" sized VM. 
# See the VM sizes documentation for more information: 
# https://azure.microsoft.com/documentation/articles/virtual-machines-windows-sizes/
$vmSize = "Standard_A1"

# Computer name for the VM. This examples sets the computer name as "myComputer".
$computerName = "New VM"

# Name of the disk that holds the OS. This example sets the 
# OS disk name as "myOsDisk"
$osDiskName = "OsDisk"

# Assign a SKU name. This example sets the SKU name as "Standard_LRS"
# Valid values for -SkuName are: Standard_LRS - locally redundant storage, Standard_ZRS - zone redundant
# storage, Standard_GRS - geo redundant storage, Standard_RAGRS - read access geo redundant storage,
# Premium_LRS - premium locally redundant storage. 
$skuName = "Standard_LRS"

# Get the storage account where the uploaded image is stored
$storageAcc = Get-AzureRmStorageAccount -ResourceGroupName $storageRgName -AccountName $storageAccName
Write-Output $storageAcc

# Set the VM name and size
$vmConfig = New-AzureRmVMConfig -VMName $vmName -VMSize $vmSize

#Set the Windows operating system configuration and add the NIC
$vm = Set-AzureRmVMOperatingSystem -VM $vmConfig -Windows -ComputerName $computerName `
    -Credential $cred -ProvisionVMAgent -EnableAutoUpdate
$vm = Add-AzureRmVMNetworkInterface -VM $vm -Id $nic.Id

# Create the OS disk URI
$osDiskUri = '{0}vhds/{1}-{2}.vhd' `
    -f $storageAcc.PrimaryEndpoints.Blob.ToString(), $vmName.ToLower(), $osDiskName
Write-Output "OS Disk URI:" $osDiskUri

# Configure the OS disk to be created from the existing VHD image (-CreateOption fromImage).
$vm = Set-AzureRmVMOSDisk -VM $vm -Name $osDiskName -VhdUri $osDiskUri -CreateOption fromImage -SourceImageUri $imageURI -Windows
Write-Output $vm

# Create the new VM
New-AzureRmVM -ResourceGroupName $rgName -Location $location -VM $vm

$vmList = Get-AzureRmVM -ResourceGroupName $rgName
$vmList.Name

Answer 1

OS provisioning for VM 'MyVM' failed. Error details: This installation of Windows is undeployable. Make sure the image has been properly prepared (generalized).

According to the error message, it seems you have not generalized VM correctly. we should RDP to Azure VM, and run sysprep, in the System Preparation Tool dialog box, select Enter System Out-of-Box Experience (OOBE), and make sure that the Generalize check box is selected. In Shutdown Options, select Shutdown.

More information about Generalize a Windows virtual machine, please refer to this link.

I'm also unable to start the VM again because it's told me it's generalised

Capture an image of an Azure widnows VM, this process deletes the original virtual machine after it is captured.
Prior to capturing an image of an Azure virtual machine, it is recommended the target virtual machine be backed up