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My first guess is that you need to provide the full path to that property. In this case, I think it would be

storageProfile.imageReference

I agree with @fast-vr-6049 on both of his recommendations. Re:

deleteBeforeReplace

, the reason you'll need to use that is, it seems you are setting the VM name explicitly instead of using auto-naming, so you can't have two VMs with the same name. But it means for a moment you won't have any VM running until the new is setup after the original one is deleted. Is there a reason you don't want to use Pulumi's auto-naming feature?

Thank you both for your kind advisory. I will try and experiment. There's no specific reason for us not to use the auto-naming feature, we however just need this single low-performance for the purpose of DNS forwarding