Hi,
I spent a good amount of time trying to do an Azure install of CML 2.7 using https://github.com/CiscoDevNet/cloud-cml/blob/main/documentation/Azure.md, but had more questions than answers and it did not go as smoothly as I hoped. However, I attempted a VMware-Azure migration (https://learn.microsoft.com/en-us/azure/migrate/tutorial-migrate-vmware) of an on-prem CML 2.7 instance and it worked flawlessly. I assume that this is not supported, but it appears to be working fine without any reconfiguration, other than reregistering the license.
I started with the Standard D4ds v4 (4 vcpus, 16 GiB memory) for a compute size. See the official explanation for sizing here, particularly for Nested virtualization.
https://github.com/CiscoDevNet/cloud-cml/blob/main/documentation/Azure.md#compute-size
As far as I know, this is not a support method, so use at your own risk.
I was just glad to be able to BYOLabs from the original install.
Enjoy!
Bill