Tried to install SQL Server 2017 on Azure VM Windows 10 Pro edition: won't start

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I'm trying to install SQL Server 2017 Express edition on Azure VM Windows 10 Pro. It installs fine, however, the engine won't start ...

2018-09-23 12:48:08.68 Server      Microsoft SQL Server 2017 (RTM) - 14.0.1000.169 (X64) 
    Aug 22 2017 17:04:49 
    Copyright (C) 2017 Microsoft Corporation
    Express Edition (64-bit) on Windows 10 Pro 10.0 <X64> (Build 17134: ) (Hypervisor)

2018-09-23 12:48:08.68 Server      UTC adjustment: -4:00
2018-09-23 12:48:08.68 Server      (c) Microsoft Corporation.
2018-09-23 12:48:08.68 Server      All rights reserved.
2018-09-23 12:48:08.68 Server      Server process ID is 8352.
2018-09-23 12:48:08.68 Server      System Manufacturer: 'Microsoft Corporation', System Model: 'Virtual Machine'.
2018-09-23 12:48:08.68 Server      Authentication mode is WINDOWS-ONLY.
2018-09-23 12:48:08.68 Server      Logging SQL Server messages in file 'C:\Program Files\Microsoft SQL Server\MSSQL14.SQLEXPRESS\MSSQL\Log\ERRORLOG'.
2018-09-23 12:48:08.68 Server      The service account is 'NT Service\MSSQL$SQLEXPRESS'. This is an informational message; no user action is required.
2018-09-23 12:48:08.68 Server      Registry startup parameters: 
     -d C:\Program Files\Microsoft SQL Server\MSSQL14.SQLEXPRESS\MSSQL\DATA\master.mdf
     -e C:\Program Files\Microsoft SQL Server\MSSQL14.SQLEXPRESS\MSSQL\Log\ERRORLOG
     -l C:\Program Files\Microsoft SQL Server\MSSQL14.SQLEXPRESS\MSSQL\DATA\mastlog.ldf
2018-09-23 12:48:08.68 Server      Command Line Startup Parameters:
     -s "SQLEXPRESS"
2018-09-23 12:48:08.69 Server      SQL Server detected 1 sockets with 2 cores per socket and 2 logical processors per socket, 2 total logical processors; using 2 logical processors based on SQL Server licensing. This is an informational message; no user action is required.
2018-09-23 12:48:08.69 Server      SQL Server is starting at normal priority base (=7). This is an informational message only. No user action is required.
2018-09-23 12:48:08.69 Server      Detected 7167 MB of RAM. This is an informational message; no user action is required.
2018-09-23 12:48:08.69 Server      Using conventional memory in the memory manager.
2018-09-23 12:48:08.70 Server      Machine supports memory error recovery. SQL memory protection is enabled to recover from memory corruption.
2018-09-23 12:48:08.71 Server      Default collation: SQL_Latin1_General_CP1_CI_AS (us_english 1033)
2018-09-23 12:48:08.75 Server      Buffer pool extension is already disabled. No action is necessary. 
2018-09-23 12:48:08.79 Server      InitializeExternalUserGroupSid failed. Implied authentication will be disabled.
2018-09-23 12:48:08.79 Server      Implied authentication manager initialization failed. Implied authentication will be disabled.
2018-09-23 12:48:08.80 Server      This instance of SQL Server last reported using a process ID of 3784 at 9/23/2018 10:32:14 AM (local) 9/23/2018 2:32:14 PM (UTC). This is an informational message only; no user action is required.
2018-09-23 12:48:08.80 Server      The maximum number of dedicated administrator connections for this instance is '1'
2018-09-23 12:48:08.80 Server      Node configuration: node 0: CPU mask: 0x0000000000000003:0 Active CPU mask: 0x0000000000000003:0. This message provides a description of the NUMA configuration for this computer. This is an informational message only. No user action is required.
2018-09-23 12:48:08.82 Server      Using dynamic lock allocation.  Initial allocation of 2500 Lock blocks and 5000 Lock Owner blocks per node.  This is an informational message only.  No user action is required.
2018-09-23 12:48:08.83 Server      In-Memory OLTP initialized on lowend machine.
2018-09-23 12:48:08.85 Server      Database Instant File Initialization: enabled. For security and performance considerations see the topic 'Database Instant File Initialization' in SQL Server Books Online. This is an informational message only. No user action is required.
2018-09-23 12:48:08.87 Server      Query Store settings initialized with enabled = 1, 
2018-09-23 12:48:08.87 Server      Software Usage Metrics is disabled.
2018-09-23 12:48:08.87 spid5s      Starting up database 'master'.
2018-09-23 12:48:08.89 spid5s      2 transactions rolled forward in database 'master' (1:0). This is an informational message only. No user action is required.
2018-09-23 12:48:08.91 Server      CLR version v4.0.30319 loaded.
2018-09-23 12:48:08.92 spid5s      0 transactions rolled back in database 'master' (1:0). This is an informational message only. No user action is required.
2018-09-23 12:48:09.06 Server      Common language runtime (CLR) functionality initialized using CLR version v4.0.30319 from C:\Windows\Microsoft.NET\Framework64\v4.0.30319\.
2018-09-23 12:48:09.09 spid5s      SQL Server Audit is starting the audits. This is an informational message. No user action is required.
2018-09-23 12:48:09.10 spid5s      SQL Server Audit has started the audits. This is an informational message. No user action is required.
2018-09-23 12:48:09.13 spid5s      SQL Trace ID 1 was started by login "sa".
2018-09-23 12:48:09.13 spid5s      Server name is 'vm-win10\SQLEXPRESS'. This is an informational message only. No user action is required.
2018-09-23 12:48:09.26 spid5s      Starting up database 'msdb'.
2018-09-23 12:48:09.26 spid9s      Starting up database 'mssqlsystemresource'.
2018-09-23 12:48:09.29 spid16s     A self-generated certificate was successfully loaded for encryption.
2018-09-23 12:48:09.29 spid16s     Server local connection provider is ready to accept connection on [ \\.\pipe\SQLLocal\SQLEXPRESS ].
2018-09-23 12:48:09.29 spid5s      Error: 17204, Severity: 16, State: 1.
2018-09-23 12:48:09.29 spid5s      FCB::Open failed: Could not open file d:\dbs\sh\sprel\0822_164025\cmd\33\obj\x64retail\sql\mkmastr\databases\mkmastr.proj\MSDBData.mdf for file number 1.  OS error: 3(The system cannot find the path specified.).
2018-09-23 12:48:09.29 spid16s     Server local connection provider is ready to accept connection on [ \\.\pipe\MSSQL$SQLEXPRESS\sql\query ].
2018-09-23 12:48:09.30 spid5s      Error: 5120, Severity: 16, State: 101.
2018-09-23 12:48:09.30 spid5s      Unable to open the physical file "d:\dbs\sh\sprel\0822_164025\cmd\33\obj\x64retail\sql\mkmastr\databases\mkmastr.proj\MSDBData.mdf". Operating system error 3: "3(The system cannot find the path specified.)".
2018-09-23 12:48:09.30 spid16s     Dedicated administrator connection support was not started because it is disabled on this edition of SQL Server. If you want to use a dedicated administrator connection, restart SQL Server using the trace flag 7806. This is an informational message only. No user action is required.
2018-09-23 12:48:09.30 spid16s     SQL Server is now ready for client connections. This is an informational message; no user action is required.
2018-09-23 12:48:09.30 spid5s      Error: 17207, Severity: 16, State: 1.
2018-09-23 12:48:09.30 spid5s      FileMgr::StartLogFiles: Operating system error 2(The system cannot find the file specified.) occurred while creating or opening file 'd:\dbs\sh\sprel\0822_164025\cmd\33\obj\x64retail\sql\mkmastr\databases\mkmastr.proj\MSDBLog.ldf'. Diagnose and correct the operating system error, and retry the operation.
2018-09-23 12:48:09.30 Server      SQL Server is attempting to register a Service Principal Name (SPN) for the SQL Server service. Kerberos authentication will not be possible until a SPN is registered for the SQL Server service. This is an informational message. No user action is required.
2018-09-23 12:48:09.30 Server      The SQL Server Network Interface library could not register the Service Principal Name (SPN) [ MSSQLSvc/vm-win10:SQLEXPRESS ] for the SQL Server service. Windows return code: 0xffffffff, state: 63. Failure to register a SPN might cause integrated authentication to use NTLM instead of Kerberos. This is an informational message. Further action is only required if Kerberos authentication is required by authentication policies and if the SPN has not been manually registered.
2018-09-23 12:48:09.30 spid5s      File activation failure. The physical file name "d:\dbs\sh\sprel\0822_164025\cmd\33\obj\x64retail\sql\mkmastr\databases\mkmastr.proj\MSDBLog.ldf" may be incorrect.
2018-09-23 12:48:09.30 spid9s      The resource database build version is 14.00.1000. This is an informational message only. No user action is required.
2018-09-23 12:48:09.38 spid9s      Starting up database 'model'.
2018-09-23 12:48:09.38 spid9s      Error: 17204, Severity: 16, State: 1.
2018-09-23 12:48:09.38 spid9s      FCB::Open failed: Could not open file d:\dbs\sh\sprel\0822_164025\cmd\33\obj\x64retail\sql\mkmastr\databases\mkmastr.proj\model.mdf for file number 1.  OS error: 3(The system cannot find the path specified.).
2018-09-23 12:48:09.38 spid9s      Error: 5120, Severity: 16, State: 101.
2018-09-23 12:48:09.38 spid9s      Unable to open the physical file "d:\dbs\sh\sprel\0822_164025\cmd\33\obj\x64retail\sql\mkmastr\databases\mkmastr.proj\model.mdf". Operating system error 3: "3(The system cannot find the path specified.)".
2018-09-23 12:48:09.39 spid9s      Error: 17207, Severity: 16, State: 1.
2018-09-23 12:48:09.39 spid9s      FileMgr::StartLogFiles: Operating system error 2(The system cannot find the file specified.) occurred while creating or opening file 'd:\dbs\sh\sprel\0822_164025\cmd\33\obj\x64retail\sql\mkmastr\databases\mkmastr.proj\modellog.ldf'. Diagnose and correct the operating system error, and retry the operation.
2018-09-23 12:48:09.39 spid9s      File activation failure. The physical file name "d:\dbs\sh\sprel\0822_164025\cmd\33\obj\x64retail\sql\mkmastr\databases\mkmastr.proj\modellog.ldf" may be incorrect.
2018-09-23 12:48:09.39 spid9s      Error: 945, Severity: 14, State: 2.
2018-09-23 12:48:09.39 spid9s      Database 'model' cannot be opened due to inaccessible files or insufficient memory or disk space.  See the SQL Server errorlog for details.
2018-09-23 12:48:09.39 spid9s      SQL Server shutdown has been initiated
2018-09-23 12:48:09.39 spid9s      SQL Trace was stopped due to server shutdown. Trace ID = '1'. This is an informational message only; no user action is required.
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asked on Stack Overflow Sep 23, 2018 by Rod • edited Sep 23, 2018 by marc_s

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