The answer is the Custom Script Extension (CSE) on the VM. This is correct because CSE allows you to run PowerShell or Bash scripts after provisioning, making it the ideal tool to install IIS and execute a registration script that uses the VM’s managed identity for secure API access. When declared as a resource in a Bicep template, CSE ensures these steps run automatically on every deployment, meeting the requirement for repeatable, hands-off configuration. On the AZ-104 exam, this scenario tests your understanding of post-deployment automation and managed identity integration—a common trap is confusing CSE with VM extensions like DSC or Azure Automation, but remember that CSE is the simplest way to run arbitrary scripts at provision time. A memory tip: think of CSE as the “setup crew” that arrives right after the VM is built, handling both software installation and identity-based registration without manual login.
AZ-104 Deploy and Manage Azure Compute Practice Question
This AZ-104 practice question tests your understanding of deploy and manage azure compute. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A Windows VM must install IIS after provisioning and then run a script that registers the server with an internal API by using the VM's managed identity. The same steps must run automatically whenever the VM is deployed from Bicep. What should be added to the deployment?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
A Custom Script Extension on the VM
The Custom Script Extension (CSE) is the correct choice because it allows you to run PowerShell or Bash scripts on an Azure VM after provisioning, enabling the installation of IIS and execution of a registration script that leverages the VM's managed identity. Since the requirement specifies that these steps must run automatically whenever the VM is deployed from Bicep, the CSE can be declared as a resource in the Bicep template, ensuring it executes on every deployment. This directly addresses the need for post-deployment configuration without manual intervention.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
A read-only resource lock on the VM resource group
Why it's wrong here
A lock prevents changes, but it does not install software or run deployment scripts.
✓
A Custom Script Extension on the VM
Why this is correct
The Custom Script Extension runs scripted configuration during deployment and is suitable for post-provisioning setup.
Related concept
Read the scenario before looking for a memorised answer.
✗
An availability set containing the VM
Why it's wrong here
Availability sets improve resiliency, but they do not automate operating-system configuration.
✗
A proximity placement group for the VM
Why it's wrong here
Proximity placement groups influence placement and latency, not software installation.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse resource locks or availability sets with automation capabilities, mistakenly thinking they can trigger scripts, when in reality only extensions like Custom Script Extension or Desired State Configuration can perform post-deployment configuration tasks.
Detailed technical explanation
How to think about this question
The Custom Script Extension works by downloading and executing a script from Azure Storage, GitHub, or a public URL onto the VM, using the VM agent (Windows Azure Guest Agent) which runs as a service. When using managed identity, the script can authenticate to Azure AD without storing credentials, by obtaining an access token from the Azure Instance Metadata Service (IMDS) endpoint at 169.254.169.254. In a Bicep deployment, the CSE resource can be configured with the 'protectedSettings' property to securely pass script URIs or command arguments, and it supports idempotent execution via the 'forceUpdateTag' property to re-run on subsequent deployments.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-104 question in full detail.
Deploy and Manage Azure Compute — This question tests Deploy and Manage Azure Compute — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: A Custom Script Extension on the VM — The Custom Script Extension (CSE) is the correct choice because it allows you to run PowerShell or Bash scripts on an Azure VM after provisioning, enabling the installation of IIS and execution of a registration script that leverages the VM's managed identity. Since the requirement specifies that these steps must run automatically whenever the VM is deployed from Bicep, the CSE can be declared as a resource in the Bicep template, ensuring it executes on every deployment. This directly addresses the need for post-deployment configuration without manual intervention.
What should I do if I get this AZ-104 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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