The answer is the Custom Script Extension, which is the correct Azure feature to run a PowerShell script on a Windows Azure VM after provisioning without interactive logon. This extension executes the script as the local system account, meaning no user login or RDP session is required, making it perfect for one-time configuration tasks such as creating registry settings or installing applications. On the AZ-104 exam, this question tests your understanding of VM extensions and their use cases, often appearing in scenarios where you need post-deployment automation without manual intervention. A common trap is confusing the Custom Script Extension with Desired State Configuration (DSC); remember that CSE is for one-time execution, while DSC is for ongoing state management. Memory tip: think “CSE for one-time setup, DSC for continuous compliance.”
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.
You have already deployed a Windows Server VM. After provisioning, you need to run a PowerShell script once to configure an application and create a registry setting without logging in interactively. Which Azure feature should you use?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Custom Script Extension
The Custom Script Extension (CSE) is the correct choice because it allows you to run a PowerShell script on a Windows VM after provisioning, without requiring interactive logon. It executes the script as the local system account, making it ideal for one-time configuration tasks like setting registry keys or installing applications. This aligns with the requirement to run a script once non-interactively.
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.
✓
Custom Script Extension
Why this is correct
This extension can download and run a script on a VM after deployment without requiring interactive logon.
Related concept
Read the scenario before looking for a memorised answer.
✗
cloud-init
Why it's wrong here
cloud-init is used for Linux first-boot configuration and is not the normal Windows post-deployment script option.
✗
Azure Policy
Why it's wrong here
Azure Policy can enforce configuration rules, but it does not execute a one-time application setup script on a VM.
✗
Recovery Services vault
Why it's wrong here
A Recovery Services vault is used for backup operations, not for running VM configuration scripts.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse cloud-init (a Linux-only tool) with the Custom Script Extension, mistakenly assuming cloud-init works on Windows VMs, or they think Azure Policy can execute scripts when it only evaluates and enforces policies.
Detailed technical explanation
How to think about this question
The Custom Script Extension downloads the script from Azure Storage, GitHub, or a public URL and executes it via the Windows Remote Management (WinRM) service using the LocalSystem account. Under the hood, it uses the Azure VM Agent (WindowsGuestAgent) to manage the extension lifecycle, ensuring idempotency by tracking execution state. In real-world scenarios, CSE is often used for post-deployment tasks like joining a domain, installing software via Chocolatey, or modifying registry settings that require elevated privileges.
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
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
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: Custom Script Extension — The Custom Script Extension (CSE) is the correct choice because it allows you to run a PowerShell script on a Windows VM after provisioning, without requiring interactive logon. It executes the script as the local system account, making it ideal for one-time configuration tasks like setting registry keys or installing applications. This aligns with the requirement to run a script once non-interactively.
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
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. You need to run a script on VM-App02 immediately after deployment to install a custom monitoring agent. The solution should not require opening additional inbound management ports. What should you use?
medium
A.Boot diagnostics
✓ B.Custom Script Extension
C.An inbound NSG rule for WinRM
D.A proximity placement group
Why B: The Custom Script Extension (CSE) is the correct choice because it allows you to run a script on a VM immediately after deployment without opening any inbound management ports. CSE downloads and executes scripts on the VM via the Azure fabric, using the VM's outbound connectivity to Azure storage or GitHub, and does not require any inbound port (like RDP or WinRM) to be open. This meets the requirement of not opening additional inbound management ports while enabling post-deployment configuration.
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This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.
Question Discussion
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