When I select the “BYOL plan” to create a virtual machine in the Azure Marketplace, I get the error related to LinuxDiagnostics plugins
However, when I use the “5.4.4-9 plan” with the same settings, the creation process completes without any issues
The issue is related to Boot diagnostics in Azure
After disabling “Boot diagnostics” in monitoring and unchecking “Enable OS guest diagnostics,” the deployment is successfull.