Example:
Create a vm from SDK (not CLI) using the Smart Create command for vm.
There is a availability_set parameter and a availability_set_type parameter.
Set the availability_set parameter to an availability set ID.
Run the command.

Expected: vm is added to the availability set
Actual: the vm is not added to the availability set because the availability_set_type parameter was set to null (which defaults to 'none').

Possible solution: we make the flags (which are a limitation of ARM templates) required so users must fill them out and then look for the related field to set a value to. We would need to hide that required-ness on the CLI side.