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I believe elevator=none (el8+) or noop (el7) is recommended for hyperv workloads.

https://access.redhat.com/solutions/109223

https://learn.microsoft.com/en-us/windows-server/administration/performance-tuning/role/hyper-v-server/linux-virtual-machine-considerations

Reported by: gb-millsjt

https://access.redhat.com/documentation/en-us/red_hat_enterprise_linux/8/html/deploying_rhel_8_on_microsoft_azure/assembly_deploying-a-rhel-image-as-a-virtual-machine-on-microsoft-azure_cloud-content-azure#annotations:7848af03-24d9-4fc2-8166-17b7c7d5481a

BTW, on Standard_M128m, one scsi disk(hv_storvsc) is actually HDD., and IOPS can
be improved with deadline, and workload is basically one 128 job fio randread:

fio --filename=/dev/sdb --direct=1 --rw=randread --sync=0 --time_based --bs=4k --size=4096M \
	--numjobs=128 --iodepth 64 --runtime=60 --group_reporting --name=test --thread --ioengine=libaio

The needinfo request[s] on this closed bug have been removed as they have been unresolved for 120 days