I started along that path but aborted when I saw the size of the image file download. I went the other way and instead booted up the Vm in Azure, performed all the necessary configuration via RDP and then ran sysprep on the Vm in Azure. Then "Capture" the Vm once it's shut down. All of this took far less time than it would've taken to download the 127Gb and more importantly upload it again afterwards. Might not be the only way but it's what I've done.