I was able to see the same problem, and after some discussion, I found that with this command there is some problem with the code, therefore, when the correct error is not reported.
In fact, the problem is that when you call Set-AzureDeployment, it cannot use the Windows Azure Storage account to temporarily load your package and fail with some strange error.
To solve this problem, please install a valid Windows Azure account, first call Set-AzureSubscription, and then use the same Set-AzureDeployment command.
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