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I created a Server 2008R2 VM in Hyper V, ran Sysprep on it, then uploaded the VHD to Azure via Azcopy.

Then I converted the VHD file into a managed disk, and created a VM from the managed disk.

Now I am unable to RDP to this VM to complete the installation.

I tried running mstsc /admin however this didn't work either.

I installed boot diagnostics and got a picture of the current state, however I'm not sure how to proceed from here.

Is there any way I can connect to it to complete the installation?

screenshot of current VM state (via boot diagnostics)

Thanks.

There's no RDP functionality during the specialize phase of Windows Setup, which is the phase you're seeing in your screenshot upon first boot of your sysprepped VM. You're going to need to use Sysprep with an answer file so that the specialize phase runs unattended.

There's no traditional "console" access to an Azure VM. There's a serial console connection available, but I don't believe you can use it to configure the VM while it's in the specialize phase of Windows Setup.

https://docs.microsoft.com/en-us/windows-hardware/manufacture/desktop/use-answer-files-with-sysprep

You must have missed the step in the process to convert VHD to and Azure Image before deploying. Below is a link to the process.

https://docs.microsoft.com/en-us/azure/virtual-machines/windows/upload-generalized-managed#generalize-the-source-vm-by-using-sysprep

At this point you will have to delete VM and disk. Upload sysprep VHD again, this time convert to image then deploy from image.

Easiest and fastest way to fix issue.