Hi,
As far as i know, Azure SDK 1.7 does not requires Microsoft.WindowsAzure.ServiceRuntime reference's "CopyLocal" property must be "true", my test cloud application can be deployed success without "True" of "CopyLocal". Does your application works fine
if true but failed if false?
I suggest you check RoleEnvironmen.IsAvailable is true or false when application is running on cloud. And can you get any error message or trace message from Azure VM?
BR,
Arwind
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