I'm not sure if this is an Azure error, as I don't see any Azure specific issues. I am seeing two other potential issues, however. Specifically, I see this:

Temporary failure (message: 'AnsibleTowerClient::UnlicensedFeatureError') caught during #do_work. Sleeping for a while before resuming.

I'm also seeing this, which doesn't look right as it has a nil key:

[----] I, [2017-08-25T03:59:21.964404 #3288:c1d130]  INFO -- : Q-task_id([log_status]) MIQ(MiqServer.log_system_status) [EVM Server (2966)] MiqQueue count for state=["error"] by zone and role: {"default"=>{nil=>4}}

How these might tie into the Azure issue, I'm not sure yet.

This should resolve the memory issues:

https://github.com/ManageIQ/manageiq-providers-azure/pull/139

Correction: https://github.com/ManageIQ/manageiq-providers-azure/pull/138