There’s actually a discussion over at https://phpazure.codeplex.com/discussions/349701
It is a permissions issue as I sort-of resolved my issue after updating the permissions. Essentially, you’re going to change the install-php-impl.cmd file to say:
CALL icacls %RoleRoot% /grant “NETWORK SERVICE”:F /T
I haven’t yet confirmed this. I manually changed permissions using Remote Desktop to the azure instance. Once I changed permissions, I no longer got the error you’re showing. I started getting a different error which I’m working on now.
If you make that change and confirm it works, please let us know.