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I thought this was a joke, but they really don't: https://learn.microsoft.com/en-us/troubleshoot/azure/virtual...

what the fuck? What is Microsoft doing? ed25519 was added to openssh, what, 7 years ago? This boggles my mind.

Just about exactly 10 years ago, actually: https://lwn.net/Articles/590870/
It actually violates some federal contracting rules to support non-NIST keys. Maybe they don’t bother for that reason?
Azure's gov cloud is a separate API.
With a lot of shared software. Need a strong reason to introduce differences which if accidentally misconfigured could have large contract liabilities.
Maybe they're supporting TLAs abilities to crack Microsoft users when 'necessary'?
Does AWS or GCP? Doing some web searches, it looks like at least parts of GCP do not:

https://issuetracker.google.com/issues/195231191

And some parts of AWS do support the key type:

https://aws.amazon.com/about-aws/whats-new/2021/08/amazon-ec...

No. :(