While deploying my cloud project with all roles set to XS size VM, I got this error message stating my resource is too large for specified VM size.
As VM of XS size only have 20G C Drive, most likely I specified a local storage larger then 20G. So I checked my Role settings and found when creating cache worker role, the VM size defaults to Small, and diagnostic storage was set to 20G by default, hence exceed the size limit.
so the fix is to lower local diagnostic storage size.
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