Package: cloud-init Version: 0.7.9-2 Cloud-init not setting public key on Azure portal when creating a virtual machine instance. Appears to be fixed in: https://bugs.launchpad.net/cloud-init/+bug/1717611. Please upgrade cloud-init to cloud-init 18.4 or 18.5.
Using Debian Stretch, cloud-init 0.7.9-2. Note this works as expected with cloud-init 18.4. Thanks, Damiaan Habets