VM provisioning succeeds even when azure-init returns error

## Description

From the testing done in #57 it looks like provisioning still succeeds even when azure-init was returning error. The issue needs investigation to avoid false testing results.

Start by reviewing the testing scenario described in issue #57 and reproduce provisioning while azure-init returns an error. Trace how that error is reported to the provisioning process; the work is done when the failure is surfaced instead of provisioning being reported as successful.

Written by the indexing model from the issue text.