diff --git a/sky/provision/azure/instance.py b/sky/provision/azure/instance.py
index dde83e0d600..46d49e2d00a 100644
--- a/sky/provision/azure/instance.py
+++ b/sky/provision/azure/instance.py
@@ -1,6 +1,7 @@
 """Azure instance provisioning."""
 import logging
 from multiprocessing import pool
+import typing
 from typing import Any, Callable, Dict, List, Optional
 
 from sky import exceptions
@@ -10,6 +11,9 @@
 from sky.utils import common_utils
 from sky.utils import ux_utils
 
+if typing.TYPE_CHECKING:
+    from azure.mgmt import compute as azure_compute
+
 logger = sky_logging.init_logger(__name__)
 
 # Suppress noisy logs from Azure SDK. Reference:
@@ -21,6 +25,8 @@
 TAG_RAY_CLUSTER_NAME = 'ray-cluster-name'
 TAG_RAY_NODE_KIND = 'ray-node-type'
 
+_RESOURCE_GROUP_NOT_FOUND_ERROR_MESSAGE = 'ResourceGroupNotFound'
+
 
 def get_azure_sdk_function(client: Any, function_name: str) -> Callable:
     """Retrieve a callable function from Azure SDK client object.
@@ -156,32 +162,8 @@ def terminate_instances(
     delete_resource_group(resource_group, force_deletion_types=None)
 
 
-# def _get_vm_ips(network_client, vm, resource_group: str,
-#                 use_internal_ips: bool) -> Tuple[str, str]:
-#     nic_id = vm.network_profile.network_interfaces[0].id
-#     nic_name = nic_id.split("/")[-1]
-#     nic = network_client.network_interfaces.get(
-#         resource_group_name=resource_group,
-#         network_interface_name=nic_name,
-#     )
-#     ip_config = nic.ip_configurations[0]
-
-#     external_ip = None
-#     if not use_internal_ips:
-#         public_ip_id = ip_config.public_ip_address.id
-#         public_ip_name = public_ip_id.split("/")[-1]
-#         public_ip = network_client.public_ip_addresses.get(
-#             resource_group_name=resource_group,
-#             public_ip_address_name=public_ip_name,
-#         )
-#         external_ip = public_ip.ip_address
-
-#     internal_ip = ip_config.private_ip_address
-
-#     return (external_ip, internal_ip)
-
-
-def _get_vm_status(compute_client, vm_name: str, resource_group: str) -> str:
+def _get_vm_status(compute_client: 'azure_compute.ComputeManagementClient',
+                   vm_name: str, resource_group: str) -> str:
     instance = compute_client.virtual_machines.instance_view(
         resource_group_name=resource_group, vm_name=vm_name).as_dict()
     for status in instance['statuses']:
@@ -197,8 +179,10 @@ def _get_vm_status(compute_client, vm_name: str, resource_group: str) -> str:
     raise ValueError(f'Failed to get status for VM {vm_name}')
 
 
-def _filter_instances(compute_client, filters: Dict[str, str],
-                      resource_group: str) -> List[Any]:
+def _filter_instances(
+        compute_client: 'azure_compute.ComputeManagementClient',
+        filters: Dict[str, str],
+        resource_group: str) -> List['azure_compute.models.VirtualMachine']:
 
     def match_tags(vm):
         for k, v in filters.items():
@@ -212,7 +196,7 @@ def match_tags(vm):
         vms = list_virtual_machines(resource_group_name=resource_group)
         nodes = list(filter(match_tags, vms))
     except azure.exceptions().ResourceNotFoundError as e:
-        if 'ResourceGroupNotFound' in str(e):
+        if _RESOURCE_GROUP_NOT_FOUND_ERROR_MESSAGE in str(e):
             return []
         raise
     return nodes
@@ -245,7 +229,8 @@ def query_instances(
         'Migrating': status_lib.ClusterStatus.INIT,
         'Deleting': None,
         # Succeeded in provisioning state means the VM is provisioned but not
-        # necessarily running.
+        # necessarily running. We exclude Succeeded state here, and the caller
+        # should determine the status of the VM based on the power state.
         # 'Succeeded': status_lib.ClusterStatus.UP,
     }
 
@@ -256,7 +241,9 @@ def query_instances(
     nodes = _filter_instances(compute_client, filters, resource_group)
     statuses = {}
 
-    def _fetch_and_map_status(compute_client, node, resource_group: str):
+    def _fetch_and_map_status(
+            compute_client: 'azure_compute.ComputeManagementClient', node,
+            resource_group: str):
         if node.provisioning_state in provisioning_state_map:
             status = provisioning_state_map[node.provisioning_state]
         else: