Pulumi Azure 2.0 introduces a major update to the Pulumi Azure provider, built on the 2.0 release of the upstream provider, enhancing features and implementing several breaking changes. Key improvements include streamlined Azure Storage resources with native static website support, new resources for Virtual Machines and Virtual Machine Scale Sets, and removal of deprecated Azure Active Directory resources, which now have their own provider. The update shifts callback function deployments from ZipBlob to Blob, adjusts default runtime versions for serverless functions, and introduces custom timeouts for lengthy resource creation processes. The release aims to prevent accidental resource adoption by rigorously checking for existing resources and offers guidance for migrating to the new version, with updated templates and community support available for users during the transition.