When create azuremachinetemplate setting "ephemeralStorageLocation: Local", ephemeralStorageLocation will be removed from azuremachinetemplate    

4.18.0-0.nightly-2024-09-05-074525

Always    

    1.Create azuremachinetemplate
apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
kind: AzureMachineTemplate
metadata:
  name: capi-azure-machine-template
  namespace: openshift-cluster-api
spec:
  template:
    spec:
      identity: None
      networkInterfaces:
      - privateIPConfigs: 1
        subnetName: zhsun-az18-59wzr-worker-subnet
        acceleratedNetworking: true
      image:
        id: /subscriptions/53b8f551-f0fc-4bea-8cba-6d1fefd54c8a/resourceGroups/zhsun-az18-59wzr-rg/providers/Microsoft.Compute/galleries/gallery_zhsun_az18_59wzr/images/zhsun-az18-59wzr-gen2/versions/latest
      osDisk:      
        diskSettings:
          ephemeralStorageLocation: Local
        diskSizeGB: 128
        cachingType: ReadOnly
        managedDisk:
          storageAccountType: Standard_LRS
        osType: Linux
      vmSize: Standard_D4s_v3       
      userDataSecret:
        name: worker-user-data

    2.
    3.
    

ephemeralStorageLocation: Local will be removed from azuremachinetemplate
$ oc get azuremachinetemplate capi-azure-machine-template1 -o yaml | grep ephemeralStorageLocation                
$

 ephemeralStorageLocation: Local is supported