- A
Use a Custom Script Extension to run the bootstrap actions after provisioning.
A custom script extension can execute setup commands and copy files automatically during deployment.
- B
Assign a system-assigned managed identity to the virtual machine.
A system-assigned identity lets the VM authenticate to Azure services without embedded secrets.
- C
Enable boot diagnostics and review the serial console output.
Why wrong: Boot diagnostics helps troubleshooting, but it does not perform the installation or secret-free authentication.
- D
Attach a read-only managed disk to store the configuration file.
Why wrong: A managed disk is for persistent storage, not for securely authenticating to Azure resources.
- E
Use an availability set to keep the bootstrap script highly available.
Why wrong: Availability sets are about resiliency, not about software installation or identity-based access.
Quick Answer
The answer is to use a system-assigned managed identity and the Custom Script Extension. The managed identity provides the Azure VM with an automatically managed identity in Azure Active Directory, allowing it to securely authenticate to any service supporting Azure AD without storing credentials in scripts or on disk. The Custom Script Extension then downloads and executes the bootstrap script on the VM during provisioning, installing the monitoring agent and pulling the configuration file from Azure Storage or another resource using that identity. On the AZ-104 exam, this pairing tests your understanding of secure, credential-free automation—a common trap is trying to use access keys or connection strings in the script, which violates the “no stored credentials” requirement. Remember the mnemonic “MICE”: Managed Identity for auth, Custom Extension for execution.
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 a monitoring agent, run a bootstrap script during provisioning, and download a configuration file from an Azure resource without storing any credentials in the script or on disk. Which two Azure compute features should the administrator use? Select two.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Use a Custom Script Extension to run the bootstrap actions after provisioning.
The Custom Script Extension (CSE) is the correct Azure feature to run a bootstrap script after provisioning because it executes a script on the VM during or after deployment, enabling installation of the monitoring agent and other configuration tasks. It is the standard method for post-deployment automation on Azure VMs, and it can reference a script stored in Azure Storage or a public URL without embedding credentials.
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.
- ✓
Use a Custom Script Extension to run the bootstrap actions after provisioning.
Why this is correct
A custom script extension can execute setup commands and copy files automatically during deployment.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Assign a system-assigned managed identity to the virtual machine.
Why this is correct
A system-assigned identity lets the VM authenticate to Azure services without embedded secrets.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Enable boot diagnostics and review the serial console output.
Why it's wrong here
Boot diagnostics helps troubleshooting, but it does not perform the installation or secret-free authentication.
- ✗
Attach a read-only managed disk to store the configuration file.
Why it's wrong here
A managed disk is for persistent storage, not for securely authenticating to Azure resources.
- ✗
Use an availability set to keep the bootstrap script highly available.
Why it's wrong here
Availability sets are about resiliency, not about software installation or identity-based access.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse boot diagnostics (Option C) with a method to run scripts, or think that a managed disk (Option D) can replace the need for secure credential storage, when in fact the combination of managed identity and Custom Script Extension is the only secure, credential-free approach for post-deployment automation.
Detailed technical explanation
How to think about this question
A system-assigned managed identity provides an automatically managed service principal in Azure AD, allowing the VM to authenticate to Azure resources (e.g., Azure Storage, Key Vault) without storing any credentials. When combined with the Custom Script Extension, the bootstrap script can use the Azure Instance Metadata Service (IMDS) endpoint (169.254.169.254) to obtain an access token and then download the configuration file from a private Azure Storage blob or Key Vault secret. This pattern is commonly used in secure DevOps pipelines where secrets must never be written to disk.
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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this AZ-104 question test?
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: Use a Custom Script Extension to run the bootstrap actions after provisioning. — The Custom Script Extension (CSE) is the correct Azure feature to run a bootstrap script after provisioning because it executes a script on the VM during or after deployment, enabling installation of the monitoring agent and other configuration tasks. It is the standard method for post-deployment automation on Azure VMs, and it can reference a script stored in Azure Storage or a public URL without embedding credentials.
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.
About these practice questions
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Last reviewed: Jun 11, 2026
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