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The local-exec provisioner in Terraform runs commands on the machine running the Terraform code, not on the Azure VM where AzCopy is typically installed. Therefore, if you run AzCopy commands through local-exec, you may run into errors related to the installation and configuration of AzCopy on the local machine, rather than on the Azure VM where it should be executed. It is recommended to use the remote-exec provisioner instead, which allows you to run commands on the Azure VM directly.