The following can be used as a work around:

For new VM:
Build VM without Nvidia Extension
sudo apt-get -o Dpkg::Options::="--force-overwrite" install -y nvidia-440
Apply Nvidia Extension for Linux to VM
Continue with setup

For existing VM with failed installation:
sudo apt-get -o Dpkg::Options::="--force-overwrite" install -y nvidia-440
sudo 
/var/lib/waagent/Microsoft.HpcCompute.NvidiaGpuDriverLinux-1.2.0.0/scripts/enable.sh
 Reboot
Continue with remaining setup

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You received this bug notification because you are a member of Kernel
Packages, which is subscribed to linux-azure in Ubuntu.
https://bugs.launchpad.net/bugs/1866407

Title:
  GPU Driver extension issue (NVIDIA)

Status in linux-azure package in Ubuntu:
  New

Bug description:
  The Nvidia GPU driver cannot be installed for VM size Standard_NC6 but
  it is correctly installed for Standard_NV6.  This is happening on
  Ubuntu Server 18.04 LTS.


  To repro this issue:

  1. Create a Virtual Machine with image Ubuntu Server 18.04 LTS and
  size Standard_NC6

  2. Add extension NvidiaGpuDriver and wait for it to fail

  3. Connect to the VM and try to install following package sudo apt
  install -y xubuntu-desktop

  4. You'll see how it is unable to install it and it suggests to run
  apt --fix-broken install but it doesn't work either.

  
  It should work accordingly to this doc 
https://docs.microsoft.com/en-us/azure/virtual-machines/extensions/hpccompute-gpu-Linux

  This may be related to an older bug for an older Nvidia version: bug
  1753796

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/linux-azure/+bug/1866407/+subscriptions

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