Virtual Machine uses managed disks for OS and data disks

# VM attached to a managed OS disk
resource "azurerm_virtual_machine" "<example_resource_name>" {
  name                  = "<example_resource_name>"
  location              = "<LOCATION>"
  resource_group_name   = "<RESOURCE_GROUP>"
  network_interface_ids = ["<example_resource_id>"]
  vm_size               = "Standard_DS1_v2"

  storage_os_disk {
    name            = "osdisk"
    create_option   = "Attach"
    managed_disk_id = "<example_resource_id>" # CRITICAL: use a managed disk for the OS disk
  }
}

// VM configured to use a managed OS disk
resource vm 'Microsoft.Compute/virtualMachines@2023-09-01' = {
  name: '<example_resource_name>'
  location: resourceGroup().location
  properties: {
    hardwareProfile: { vmSize: 'Standard_DS1_v2' }
    storageProfile: {
      osDisk: {
        name: 'osdisk'
        osType: 'Linux'
        createOption: 'Attach'
        managedDisk: {
          id: '<example_resource_id>' // CRITICAL: attaching a managed disk makes the VM use managed disks
        }
      }
    }
    networkProfile: { networkInterfaces: [ { id: '<example_resource_id>' } ] }
  }
}