Hello Daniel Leavitt,
What you're experiencing is actually expected behavior when using the Standard B1s
windows VM size in Azure.
Why you're facing this problem?
Ans- The Standard B1s
VM size only comes with 1 vCPU (burstable) and 1 GiB of RAM. While this might be okay for lightweight background services or command-line-only tasks, it is not enough for a full Windows GUI environment especially one that needs to run applications even basic ones from Microsoft (Edge, file explorer, or control panels)
Actually, with this particular VM size, windows boots, but memory is immediately consumed by system services so when you try to launch apps, the OS begins paging memory heavily.
This causes performance degradation, application launch failures, and even RDP disconnects if the CPU can't keep up. In short, the VM doesn't have the horsepower needed to run a graphical OS responsively.
I tried it from my end as well and faced similar issue as yours.
Even my test VM was getting hung and was not able to load any apps. Just like you described, the desktop loaded after some delay. Opening edge browser or even settings caused freezes or very long delays.
The easiest and most effective fix is to resize your VM to a more appropriate size for GUI workloads. I tested this too, and it worked perfectly.
az vm deallocate --resource-group arkorg --name testb1svm
az vm resize --resource-group arkorg --name testb1svm --size Standard_D2s_v3
az vm start --resource-group arkorg --name testb1svm
Now if you see it is working fine.
Reference Docs