AlmaLinux 10 with an LVM root, a free RHEL 10 compatible enterprise Linux base whose storage you can grow online without a reboot.
AlmaLinux 10 is a community owned enterprise Linux distribution produced by the AlmaLinux OS Foundation to be binary compatible with Red Hat Enterprise Linux 10, running the 6.12 kernel and following the RHEL 10 lifecycle, with active support to May 2030 and security support to May 2035. This is the LVM edition: the root filesystem is xfs on a logical volume in the almalinux volume group, with /boot and the EFI system partition kept as plain partitions, so the operating system disk is managed by the Linux Logical Volume Manager rather than by a fixed partition table.
The layout is the point. A machine on a fixed root partition can only be given more space by rebuilding it; here you enlarge the Azure disk, then grow the partition, the physical volume, the logical volume and the filesystem while the machine keeps running. Attaching a managed data disk and giving it its own volume group is the same handful of commands, so application data can live apart from the operating system and grow on its own schedule. This listing tracks the AlmaLinux 10 major release; the machine reports the current 10 point release it is patched to at procurement time.
The cloudimg image is an AlmaLinux 10 base brought fully up to date at build time and again immediately before capture, booted on its newest kernel with superseded kernels removed, with SELinux left in Enforcing mode and the root password locked. The LVM boot chain is proven rather than assumed: the root logical volume is named on every boot entry, the LVM and Hyper-V drivers ride in the initramfs, there is no swap logical volume, and the LVM devices file is shipped empty so a machine cloned from this image carries no record of the build machine's disks. No credential is baked in: access is by the SSH key you choose at launch, root cannot log in over SSH, and SSH host keys and the machine id are regenerated per machine, so no two instances share a secret or an identity. Automatic updates are installed, armed and enabled, never auto rebooting, so the machine keeps patching itself. SSH is the only network listener, BaseOS, AppStream, CRB and Extras stay enabled so you keep a working update path, no subscription or licence key is required, and 24/7 support is included.