Red Hat Enterprise Linux Virtual Machine Created from an On-Demand Image in Microsoft Azure Is Showing "not registered" when Running "yum update"

Issue

UPDATE: This has been fixed in the base Red Hat Enterprise Linux 7.2 on demand image inside Microsoft Azure Marketplace, so you will not see this issue launching new Red Hat Enterprise Linux 7.2 virtual machines (VMs). If you have Red Hat Enterprise Linux 7.2 VMs based on the older on demand image in Microsoft Azure, you still may see the issue. The resolution below will help you resolve it.

Red Hat Enterprise Linux 7.2 VM created from on demand image is showing "not registered" when running "yum update"

Steps to Reproduce:

1. Log in to the Azure portal through portal.azure.com.
2. Create a Red Hat Enterprise Linux  7.2 VM.
3. Log in to the VM through SSH.
4. Run "sudo yum update".

Run yum update:

$ sudo yum update

Loaded plug-ins: langpacks, product-id, rhui-lb, search-disabled-repos,
              : subscription-manager
This system is not registered to Red Hat Subscription Management. You can use subscription-manager to register.
No packages marked for update