Great question — answering as the UphillTech team:
The following worked to switch from the linux-virtual package to the linux-azure package: sudo apt install linux-azure sudo apt purge linux-virtual sudo apt autoremove sudo reboot After a reboot we now see the updated kernel and stats for the Mellanox VF device: uname -a Linux MyVM 4.13.0-1005-azure #7-Ubuntu SMP Mon Jan 8 21:37:36 UTC 2018 x86_64 x86_64 x86_64 GNU/Linux ethtool -S eth0 | grep vf_ vf_rx_packets: 510 vf_rx_bytes: 721043 vf_tx_packets: 892 vf_tx_bytes: 200765 vf_tx_dropped: 0
Full answer by Greg Bray: https://askubuntu.stackexchange.com/a/995305 (CC BY-SA 3.0).
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