diff --git a/docs/book/src/topics/vm-identity.md b/docs/book/src/topics/vm-identity.md
index 1413b728ecc..f2f199b5f5c 100644
--- a/docs/book/src/topics/vm-identity.md
+++ b/docs/book/src/topics/vm-identity.md
@@ -25,9 +25,9 @@ A system-assigned identity is a managed identity which is tied to the lifespan o
 
 ⚠️  **When a Node is created with a System Assigned Identity, A role of Subscription contributor is added to this generated Identity**
 
-<aside class="note warning"> 
+<aside class="note warning">
 
-<h1> Warning </h1> 
+<h1> Warning </h1>
 
 To create an Azure VM with the system-assigned managed identity enabled, your AzureClusterIdentity needs the [Virtual Machine Contributor](https://docs.microsoft.com/en-us/azure/role-based-access-control/built-in-roles#virtual-machine-contributor) role assignment. In order to be able to grant the subscription contributor role to the identity, it also needs `Microsoft.Authorization/roleAssignments/write` permissions, such as [User Access Administrator](https://docs.microsoft.com/en-us/azure/role-based-access-control/built-in-roles#user-access-administrator) or [Owner](https://docs.microsoft.com/en-us/azure/role-based-access-control/built-in-roles#owner).
 
@@ -37,7 +37,7 @@ To create an Azure VM with the system-assigned managed identity enabled, your Az
 
 #### User-assigned
 
-<aside class="note"> 
+<aside class="note">
 
 <h1> Note </h1>
 
@@ -83,7 +83,7 @@ spec:
 
 The CAPZ controller will look for `UserAssigned` value in `identity` field under `AzureMachinePool`, and assign the user identities listed in `userAssignedIdentities` to the virtual machine scale set.
 
-Alternatively, you can use the `user-assigned-identity`, and `machinepool-user-assigned-identity` flavors by setting the `{flavor}` in `clusterctl generate cluster --flavor {flavor}` to use user-assigned managed identity in machine deployment, and machine pool respectively.
+Alternatively, you can also use the `user-assigned-identity` flavor to build a simple machine deployment-enabled cluster by using `clusterctl generate cluster --flavor user-assigned-identity` to generate a cluster template.
 
 #### System-assigned
 
@@ -119,15 +119,15 @@ spec:
 
 The CAPZ controller will look for `SystemAssigned` value in `identity` field under `AzureMachinePool`, and enable system-assigned managed identity in the virtual machine scale set.
 
-Alternatively, you can also use the `system-assigned-identity`, and `machinepool-system-assigned-identity` flavors by setting the `{flavor}` in `clusterctl generate cluster --flavor {flavor}` to use system-assigned managed identity in machine deployment, and machine pool respectively.
+Alternatively, you can also use the `system-assigned-identity` flavor to build a simple machine deployment-enabled cluster by using `clusterctl generate cluster --flavor system-assigned-identity` to generate a cluster template.
 
 ### Service Principal (not recommended)
 
 A service principal is an identity in AAD which is described by a tenant ID and client (or "app") ID. It can have one or more associated secrets or certificates. The set of these values will enable the holder to exchange the values for a JWT token to communicate with Azure. The user generally creates a service principal, saves the credentials, and then uses the credentials in applications. To read more about Service Principals and AD Applications see ["Application and service principal objects in Azure Active Directory"](https://azure.microsoft.com/en-us/documentation/articles/active-directory-application-objects/).
 
-<aside class="note warning"> 
+<aside class="note warning">
 
-<h1> Warning </h1> 
+<h1> Warning </h1>
 
 Using Service Principal authentication for Cloud Provider Azure is less secure than Managed Identity. Your Service Principal credentials will be written to a file on the disk of each VM in order to be accessible by Cloud Provider.
 
diff --git a/templates/cluster-template-machinepool-multiple-subnets.yaml b/templates/cluster-template-machinepool-multiple-subnets.yaml
deleted file mode 100644
index 6c990d20638..00000000000
--- a/templates/cluster-template-machinepool-multiple-subnets.yaml
+++ /dev/null
@@ -1,302 +0,0 @@
-apiVersion: cluster.x-k8s.io/v1beta1
-kind: Cluster
-metadata:
-  labels:
-    cni: calico
-  name: ${CLUSTER_NAME}
-  namespace: default
-spec:
-  clusterNetwork:
-    pods:
-      cidrBlocks:
-      - 192.168.0.0/16
-  controlPlaneRef:
-    apiVersion: controlplane.cluster.x-k8s.io/v1beta1
-    kind: KubeadmControlPlane
-    name: ${CLUSTER_NAME}-control-plane
-  infrastructureRef:
-    apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-    kind: AzureCluster
-    name: ${CLUSTER_NAME}
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureCluster
-metadata:
-  name: ${CLUSTER_NAME}
-  namespace: default
-spec:
-  identityRef:
-    apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-    kind: AzureClusterIdentity
-    name: ${CLUSTER_IDENTITY_NAME}
-  location: ${AZURE_LOCATION}
-  networkSpec:
-    subnets:
-    - name: control-plane-subnet
-      role: control-plane
-    - name: ${CLUSTER_NAME}-mp-0
-      natGateway:
-        name: node-natgateway-0
-      role: node
-    - name: ${CLUSTER_NAME}-mp-1
-      natGateway:
-        name: node-natgateway-1
-      role: node
-    vnet:
-      name: ${AZURE_VNET_NAME:=${CLUSTER_NAME}-vnet}
-  resourceGroup: ${AZURE_RESOURCE_GROUP:=${CLUSTER_NAME}}
-  subscriptionID: ${AZURE_SUBSCRIPTION_ID}
----
-apiVersion: controlplane.cluster.x-k8s.io/v1beta1
-kind: KubeadmControlPlane
-metadata:
-  name: ${CLUSTER_NAME}-control-plane
-  namespace: default
-spec:
-  kubeadmConfigSpec:
-    clusterConfiguration:
-      apiServer:
-        extraArgs:
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-        extraVolumes:
-        - hostPath: /etc/kubernetes/azure.json
-          mountPath: /etc/kubernetes/azure.json
-          name: cloud-config
-          readOnly: true
-        timeoutForControlPlane: 20m
-      controllerManager:
-        extraArgs:
-          allocate-node-cidrs: "false"
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-          cluster-name: ${CLUSTER_NAME}
-        extraVolumes:
-        - hostPath: /etc/kubernetes/azure.json
-          mountPath: /etc/kubernetes/azure.json
-          name: cloud-config
-          readOnly: true
-      etcd:
-        local:
-          dataDir: /var/lib/etcddisk/etcd
-          extraArgs:
-            quota-backend-bytes: "8589934592"
-    diskSetup:
-      filesystems:
-      - device: /dev/disk/azure/scsi1/lun0
-        extraOpts:
-        - -E
-        - lazy_itable_init=1,lazy_journal_init=1
-        filesystem: ext4
-        label: etcd_disk
-      - device: ephemeral0.1
-        filesystem: ext4
-        label: ephemeral0
-        replaceFS: ntfs
-      partitions:
-      - device: /dev/disk/azure/scsi1/lun0
-        layout: true
-        overwrite: false
-        tableType: gpt
-    files:
-    - contentFrom:
-        secret:
-          key: control-plane-azure.json
-          name: ${CLUSTER_NAME}-control-plane-azure-json
-      owner: root:root
-      path: /etc/kubernetes/azure.json
-      permissions: "0644"
-    initConfiguration:
-      nodeRegistration:
-        kubeletExtraArgs:
-          azure-container-registry-config: /etc/kubernetes/azure.json
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-        name: '{{ ds.meta_data["local_hostname"] }}'
-    joinConfiguration:
-      nodeRegistration:
-        kubeletExtraArgs:
-          azure-container-registry-config: /etc/kubernetes/azure.json
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-        name: '{{ ds.meta_data["local_hostname"] }}'
-    mounts:
-    - - LABEL=etcd_disk
-      - /var/lib/etcddisk
-    postKubeadmCommands: []
-    preKubeadmCommands: []
-  machineTemplate:
-    infrastructureRef:
-      apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-      kind: AzureMachineTemplate
-      name: ${CLUSTER_NAME}-control-plane
-  replicas: ${CONTROL_PLANE_MACHINE_COUNT}
-  version: ${KUBERNETES_VERSION}
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureMachineTemplate
-metadata:
-  name: ${CLUSTER_NAME}-control-plane
-  namespace: default
-spec:
-  template:
-    spec:
-      dataDisks:
-      - diskSizeGB: 256
-        lun: 0
-        nameSuffix: etcddisk
-      osDisk:
-        diskSizeGB: 128
-        osType: Linux
-      sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
-      vmSize: ${AZURE_CONTROL_PLANE_MACHINE_TYPE}
----
-apiVersion: cluster.x-k8s.io/v1beta1
-kind: MachinePool
-metadata:
-  name: ${CLUSTER_NAME}-mp-0
-  namespace: default
-spec:
-  clusterName: ${CLUSTER_NAME}
-  replicas: ${WORKER_MACHINE_COUNT}
-  template:
-    spec:
-      bootstrap:
-        configRef:
-          apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-          kind: KubeadmConfig
-          name: ${CLUSTER_NAME}-mp-0
-      clusterName: ${CLUSTER_NAME}
-      infrastructureRef:
-        apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-        kind: AzureMachinePool
-        name: ${CLUSTER_NAME}-mp-0
-      version: ${KUBERNETES_VERSION}
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureMachinePool
-metadata:
-  name: ${CLUSTER_NAME}-mp-0
-  namespace: default
-spec:
-  location: ${AZURE_LOCATION}
-  strategy:
-    rollingUpdate:
-      deletePolicy: Oldest
-      maxSurge: 25%
-      maxUnavailable: 1
-    type: RollingUpdate
-  template:
-    osDisk:
-      diskSizeGB: 30
-      managedDisk:
-        storageAccountType: Premium_LRS
-      osType: Linux
-    sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
-    subnetName: ${CLUSTER_NAME}-mp-0
-    vmSize: ${AZURE_NODE_MACHINE_TYPE}
----
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-kind: KubeadmConfig
-metadata:
-  name: ${CLUSTER_NAME}-mp-0
-  namespace: default
-spec:
-  files:
-  - contentFrom:
-      secret:
-        key: worker-node-azure.json
-        name: ${CLUSTER_NAME}-mp-0-azure-json
-    owner: root:root
-    path: /etc/kubernetes/azure.json
-    permissions: "0644"
-  joinConfiguration:
-    nodeRegistration:
-      kubeletExtraArgs:
-        azure-container-registry-config: /etc/kubernetes/azure.json
-        cloud-config: /etc/kubernetes/azure.json
-        cloud-provider: azure
-      name: '{{ ds.meta_data["local_hostname"] }}'
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureClusterIdentity
-metadata:
-  labels:
-    clusterctl.cluster.x-k8s.io/move-hierarchy: "true"
-  name: ${CLUSTER_IDENTITY_NAME}
-  namespace: default
-spec:
-  allowedNamespaces: {}
-  clientID: ${AZURE_CLIENT_ID}
-  clientSecret:
-    name: ${AZURE_CLUSTER_IDENTITY_SECRET_NAME}
-    namespace: ${AZURE_CLUSTER_IDENTITY_SECRET_NAMESPACE}
-  tenantID: ${AZURE_TENANT_ID}
-  type: ServicePrincipal
----
-apiVersion: cluster.x-k8s.io/v1beta1
-kind: MachinePool
-metadata:
-  name: ${CLUSTER_NAME}-mp-1
-  namespace: default
-spec:
-  clusterName: ${CLUSTER_NAME}
-  replicas: ${WORKER_MACHINE_COUNT}
-  template:
-    spec:
-      bootstrap:
-        configRef:
-          apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-          kind: KubeadmConfig
-          name: ${CLUSTER_NAME}-mp-1
-      clusterName: ${CLUSTER_NAME}
-      infrastructureRef:
-        apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-        kind: AzureMachinePool
-        name: ${CLUSTER_NAME}-mp-1
-      version: ${KUBERNETES_VERSION}
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureMachinePool
-metadata:
-  name: ${CLUSTER_NAME}-mp-1
-  namespace: default
-spec:
-  location: ${AZURE_LOCATION}
-  strategy:
-    rollingUpdate:
-      deletePolicy: Oldest
-      maxSurge: 25%
-      maxUnavailable: 1
-    type: RollingUpdate
-  template:
-    osDisk:
-      diskSizeGB: 30
-      managedDisk:
-        storageAccountType: Premium_LRS
-      osType: Linux
-    sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
-    subnetName: ${CLUSTER_NAME}-mp-1
-    vmSize: ${AZURE_NODE_MACHINE_TYPE}
----
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-kind: KubeadmConfig
-metadata:
-  name: ${CLUSTER_NAME}-mp-1
-  namespace: default
-spec:
-  files:
-  - contentFrom:
-      secret:
-        key: worker-node-azure.json
-        name: ${CLUSTER_NAME}-mp-0-azure-json
-    owner: root:root
-    path: /etc/kubernetes/azure.json
-    permissions: "0644"
-  joinConfiguration:
-    nodeRegistration:
-      kubeletExtraArgs:
-        azure-container-registry-config: /etc/kubernetes/azure.json
-        cloud-config: /etc/kubernetes/azure.json
-        cloud-provider: azure
-      name: '{{ ds.meta_data["local_hostname"] }}'
diff --git a/templates/cluster-template-machinepool-system-assigned-identity.yaml b/templates/cluster-template-machinepool-system-assigned-identity.yaml
deleted file mode 100644
index f9354a6b704..00000000000
--- a/templates/cluster-template-machinepool-system-assigned-identity.yaml
+++ /dev/null
@@ -1,211 +0,0 @@
-apiVersion: cluster.x-k8s.io/v1beta1
-kind: Cluster
-metadata:
-  labels:
-    cni: calico
-  name: ${CLUSTER_NAME}
-  namespace: default
-spec:
-  clusterNetwork:
-    pods:
-      cidrBlocks:
-      - 192.168.0.0/16
-  controlPlaneRef:
-    apiVersion: controlplane.cluster.x-k8s.io/v1beta1
-    kind: KubeadmControlPlane
-    name: ${CLUSTER_NAME}-control-plane
-  infrastructureRef:
-    apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-    kind: AzureCluster
-    name: ${CLUSTER_NAME}
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureCluster
-metadata:
-  name: ${CLUSTER_NAME}
-  namespace: default
-spec:
-  location: ${AZURE_LOCATION}
-  networkSpec:
-    subnets:
-    - name: control-plane-subnet
-      role: control-plane
-    - name: node-subnet
-      natGateway:
-        name: node-natgateway
-      role: node
-    vnet:
-      name: ${AZURE_VNET_NAME:=${CLUSTER_NAME}-vnet}
-  resourceGroup: ${AZURE_RESOURCE_GROUP:=${CLUSTER_NAME}}
-  subscriptionID: ${AZURE_SUBSCRIPTION_ID}
----
-apiVersion: controlplane.cluster.x-k8s.io/v1beta1
-kind: KubeadmControlPlane
-metadata:
-  name: ${CLUSTER_NAME}-control-plane
-  namespace: default
-spec:
-  kubeadmConfigSpec:
-    clusterConfiguration:
-      apiServer:
-        extraArgs:
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-        extraVolumes:
-        - hostPath: /etc/kubernetes/azure.json
-          mountPath: /etc/kubernetes/azure.json
-          name: cloud-config
-          readOnly: true
-        timeoutForControlPlane: 20m
-      controllerManager:
-        extraArgs:
-          allocate-node-cidrs: "false"
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-          cluster-name: ${CLUSTER_NAME}
-        extraVolumes:
-        - hostPath: /etc/kubernetes/azure.json
-          mountPath: /etc/kubernetes/azure.json
-          name: cloud-config
-          readOnly: true
-      etcd:
-        local:
-          dataDir: /var/lib/etcddisk/etcd
-          extraArgs:
-            quota-backend-bytes: "8589934592"
-    diskSetup:
-      filesystems:
-      - device: /dev/disk/azure/scsi1/lun0
-        extraOpts:
-        - -E
-        - lazy_itable_init=1,lazy_journal_init=1
-        filesystem: ext4
-        label: etcd_disk
-      - device: ephemeral0.1
-        filesystem: ext4
-        label: ephemeral0
-        replaceFS: ntfs
-      partitions:
-      - device: /dev/disk/azure/scsi1/lun0
-        layout: true
-        overwrite: false
-        tableType: gpt
-    files:
-    - contentFrom:
-        secret:
-          key: control-plane-azure.json
-          name: ${CLUSTER_NAME}-control-plane-azure-json
-      owner: root:root
-      path: /etc/kubernetes/azure.json
-      permissions: "0644"
-    initConfiguration:
-      nodeRegistration:
-        kubeletExtraArgs:
-          azure-container-registry-config: /etc/kubernetes/azure.json
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-        name: '{{ ds.meta_data["local_hostname"] }}'
-    joinConfiguration:
-      nodeRegistration:
-        kubeletExtraArgs:
-          azure-container-registry-config: /etc/kubernetes/azure.json
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-        name: '{{ ds.meta_data["local_hostname"] }}'
-    mounts:
-    - - LABEL=etcd_disk
-      - /var/lib/etcddisk
-    postKubeadmCommands: []
-    preKubeadmCommands: []
-  machineTemplate:
-    infrastructureRef:
-      apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-      kind: AzureMachineTemplate
-      name: ${CLUSTER_NAME}-control-plane
-  replicas: ${CONTROL_PLANE_MACHINE_COUNT}
-  version: ${KUBERNETES_VERSION}
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureMachineTemplate
-metadata:
-  name: ${CLUSTER_NAME}-control-plane
-  namespace: default
-spec:
-  template:
-    spec:
-      dataDisks:
-      - diskSizeGB: 256
-        lun: 0
-        nameSuffix: etcddisk
-      osDisk:
-        diskSizeGB: 128
-        osType: Linux
-      sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
-      vmSize: ${AZURE_CONTROL_PLANE_MACHINE_TYPE}
----
-apiVersion: cluster.x-k8s.io/v1beta1
-kind: MachinePool
-metadata:
-  name: ${CLUSTER_NAME}-mp-0
-  namespace: default
-spec:
-  clusterName: ${CLUSTER_NAME}
-  replicas: ${WORKER_MACHINE_COUNT}
-  template:
-    spec:
-      bootstrap:
-        configRef:
-          apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-          kind: KubeadmConfig
-          name: ${CLUSTER_NAME}-mp-0
-      clusterName: ${CLUSTER_NAME}
-      infrastructureRef:
-        apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-        kind: AzureMachinePool
-        name: ${CLUSTER_NAME}-mp-0
-      version: ${KUBERNETES_VERSION}
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureMachinePool
-metadata:
-  name: ${CLUSTER_NAME}-mp-0
-  namespace: default
-spec:
-  identity: SystemAssigned
-  location: ${AZURE_LOCATION}
-  strategy:
-    rollingUpdate:
-      deletePolicy: Oldest
-      maxSurge: 25%
-      maxUnavailable: 1
-    type: RollingUpdate
-  template:
-    osDisk:
-      diskSizeGB: 30
-      managedDisk:
-        storageAccountType: Premium_LRS
-      osType: Linux
-    sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
-    vmSize: ${AZURE_NODE_MACHINE_TYPE}
----
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-kind: KubeadmConfig
-metadata:
-  name: ${CLUSTER_NAME}-mp-0
-  namespace: default
-spec:
-  files:
-  - contentFrom:
-      secret:
-        key: worker-node-azure.json
-        name: ${CLUSTER_NAME}-mp-0-azure-json
-    owner: root:root
-    path: /etc/kubernetes/azure.json
-    permissions: "0644"
-  joinConfiguration:
-    nodeRegistration:
-      kubeletExtraArgs:
-        azure-container-registry-config: /etc/kubernetes/azure.json
-        cloud-config: /etc/kubernetes/azure.json
-        cloud-provider: azure
-      name: '{{ ds.meta_data["local_hostname"] }}'
diff --git a/templates/cluster-template-machinepool-user-assigned-identity.yaml b/templates/cluster-template-machinepool-user-assigned-identity.yaml
deleted file mode 100644
index 811ee478b56..00000000000
--- a/templates/cluster-template-machinepool-user-assigned-identity.yaml
+++ /dev/null
@@ -1,213 +0,0 @@
-apiVersion: cluster.x-k8s.io/v1beta1
-kind: Cluster
-metadata:
-  labels:
-    cni: calico
-  name: ${CLUSTER_NAME}
-  namespace: default
-spec:
-  clusterNetwork:
-    pods:
-      cidrBlocks:
-      - 192.168.0.0/16
-  controlPlaneRef:
-    apiVersion: controlplane.cluster.x-k8s.io/v1beta1
-    kind: KubeadmControlPlane
-    name: ${CLUSTER_NAME}-control-plane
-  infrastructureRef:
-    apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-    kind: AzureCluster
-    name: ${CLUSTER_NAME}
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureCluster
-metadata:
-  name: ${CLUSTER_NAME}
-  namespace: default
-spec:
-  location: ${AZURE_LOCATION}
-  networkSpec:
-    subnets:
-    - name: control-plane-subnet
-      role: control-plane
-    - name: node-subnet
-      natGateway:
-        name: node-natgateway
-      role: node
-    vnet:
-      name: ${AZURE_VNET_NAME:=${CLUSTER_NAME}-vnet}
-  resourceGroup: ${AZURE_RESOURCE_GROUP:=${CLUSTER_NAME}}
-  subscriptionID: ${AZURE_SUBSCRIPTION_ID}
----
-apiVersion: controlplane.cluster.x-k8s.io/v1beta1
-kind: KubeadmControlPlane
-metadata:
-  name: ${CLUSTER_NAME}-control-plane
-  namespace: default
-spec:
-  kubeadmConfigSpec:
-    clusterConfiguration:
-      apiServer:
-        extraArgs:
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-        extraVolumes:
-        - hostPath: /etc/kubernetes/azure.json
-          mountPath: /etc/kubernetes/azure.json
-          name: cloud-config
-          readOnly: true
-        timeoutForControlPlane: 20m
-      controllerManager:
-        extraArgs:
-          allocate-node-cidrs: "false"
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-          cluster-name: ${CLUSTER_NAME}
-        extraVolumes:
-        - hostPath: /etc/kubernetes/azure.json
-          mountPath: /etc/kubernetes/azure.json
-          name: cloud-config
-          readOnly: true
-      etcd:
-        local:
-          dataDir: /var/lib/etcddisk/etcd
-          extraArgs:
-            quota-backend-bytes: "8589934592"
-    diskSetup:
-      filesystems:
-      - device: /dev/disk/azure/scsi1/lun0
-        extraOpts:
-        - -E
-        - lazy_itable_init=1,lazy_journal_init=1
-        filesystem: ext4
-        label: etcd_disk
-      - device: ephemeral0.1
-        filesystem: ext4
-        label: ephemeral0
-        replaceFS: ntfs
-      partitions:
-      - device: /dev/disk/azure/scsi1/lun0
-        layout: true
-        overwrite: false
-        tableType: gpt
-    files:
-    - contentFrom:
-        secret:
-          key: control-plane-azure.json
-          name: ${CLUSTER_NAME}-control-plane-azure-json
-      owner: root:root
-      path: /etc/kubernetes/azure.json
-      permissions: "0644"
-    initConfiguration:
-      nodeRegistration:
-        kubeletExtraArgs:
-          azure-container-registry-config: /etc/kubernetes/azure.json
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-        name: '{{ ds.meta_data["local_hostname"] }}'
-    joinConfiguration:
-      nodeRegistration:
-        kubeletExtraArgs:
-          azure-container-registry-config: /etc/kubernetes/azure.json
-          cloud-config: /etc/kubernetes/azure.json
-          cloud-provider: azure
-        name: '{{ ds.meta_data["local_hostname"] }}'
-    mounts:
-    - - LABEL=etcd_disk
-      - /var/lib/etcddisk
-    postKubeadmCommands: []
-    preKubeadmCommands: []
-  machineTemplate:
-    infrastructureRef:
-      apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-      kind: AzureMachineTemplate
-      name: ${CLUSTER_NAME}-control-plane
-  replicas: ${CONTROL_PLANE_MACHINE_COUNT}
-  version: ${KUBERNETES_VERSION}
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureMachineTemplate
-metadata:
-  name: ${CLUSTER_NAME}-control-plane
-  namespace: default
-spec:
-  template:
-    spec:
-      dataDisks:
-      - diskSizeGB: 256
-        lun: 0
-        nameSuffix: etcddisk
-      osDisk:
-        diskSizeGB: 128
-        osType: Linux
-      sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
-      vmSize: ${AZURE_CONTROL_PLANE_MACHINE_TYPE}
----
-apiVersion: cluster.x-k8s.io/v1beta1
-kind: MachinePool
-metadata:
-  name: ${CLUSTER_NAME}-mp-0
-  namespace: default
-spec:
-  clusterName: ${CLUSTER_NAME}
-  replicas: ${WORKER_MACHINE_COUNT}
-  template:
-    spec:
-      bootstrap:
-        configRef:
-          apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-          kind: KubeadmConfig
-          name: ${CLUSTER_NAME}-mp-0
-      clusterName: ${CLUSTER_NAME}
-      infrastructureRef:
-        apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-        kind: AzureMachinePool
-        name: ${CLUSTER_NAME}-mp-0
-      version: ${KUBERNETES_VERSION}
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureMachinePool
-metadata:
-  name: ${CLUSTER_NAME}-mp-0
-  namespace: default
-spec:
-  identity: UserAssigned
-  location: ${AZURE_LOCATION}
-  strategy:
-    rollingUpdate:
-      deletePolicy: Oldest
-      maxSurge: 25%
-      maxUnavailable: 1
-    type: RollingUpdate
-  template:
-    osDisk:
-      diskSizeGB: 30
-      managedDisk:
-        storageAccountType: Premium_LRS
-      osType: Linux
-    sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
-    vmSize: ${AZURE_NODE_MACHINE_TYPE}
-  userAssignedIdentities:
-  - providerID: ${USER_ASSIGNED_IDENTITY_PROVIDER_ID}
----
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-kind: KubeadmConfig
-metadata:
-  name: ${CLUSTER_NAME}-mp-0
-  namespace: default
-spec:
-  files:
-  - contentFrom:
-      secret:
-        key: worker-node-azure.json
-        name: ${CLUSTER_NAME}-mp-0-azure-json
-    owner: root:root
-    path: /etc/kubernetes/azure.json
-    permissions: "0644"
-  joinConfiguration:
-    nodeRegistration:
-      kubeletExtraArgs:
-        azure-container-registry-config: /etc/kubernetes/azure.json
-        cloud-config: /etc/kubernetes/azure.json
-        cloud-provider: azure
-      name: '{{ ds.meta_data["local_hostname"] }}'
diff --git a/templates/flavors/machinepool-multiple-subnets/kustomization.yaml b/templates/flavors/machinepool-multiple-subnets/kustomization.yaml
deleted file mode 100644
index 4cd6ffe71d9..00000000000
--- a/templates/flavors/machinepool-multiple-subnets/kustomization.yaml
+++ /dev/null
@@ -1,7 +0,0 @@
-namespace: default
-resources:
-  - ../machinepool
-  - machine-pool-deployment.yaml
-patchesStrategicMerge:
-  - patches/machine-pool-subnet.yaml
-  - patches/azurecluster-subnets.yaml
diff --git a/templates/flavors/machinepool-multiple-subnets/machine-pool-deployment.yaml b/templates/flavors/machinepool-multiple-subnets/machine-pool-deployment.yaml
deleted file mode 100644
index c925c051278..00000000000
--- a/templates/flavors/machinepool-multiple-subnets/machine-pool-deployment.yaml
+++ /dev/null
@@ -1,64 +0,0 @@
----
-apiVersion: cluster.x-k8s.io/v1beta1
-kind: MachinePool
-metadata:
-  name: "${CLUSTER_NAME}-mp-1"
-spec:
-  clusterName: "${CLUSTER_NAME}"
-  replicas: ${WORKER_MACHINE_COUNT}
-  template:
-    spec:
-      clusterName: "${CLUSTER_NAME}"
-      version: "${KUBERNETES_VERSION}"
-      bootstrap:
-        configRef:
-          name: "${CLUSTER_NAME}-mp-1"
-          apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-          kind: KubeadmConfig
-      infrastructureRef:
-        name: "${CLUSTER_NAME}-mp-1"
-        apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-        kind: AzureMachinePool
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureMachinePool
-metadata:
-  name: "${CLUSTER_NAME}-mp-1"
-spec:
-  location: ${AZURE_LOCATION}
-  strategy:
-    type: RollingUpdate
-    rollingUpdate:
-      maxSurge: 25%
-      maxUnavailable: 1
-      deletePolicy: Oldest
-  template:
-    vmSize: ${AZURE_NODE_MACHINE_TYPE}
-    osDisk:
-      osType: "Linux"
-      diskSizeGB: 30
-      managedDisk:
-        storageAccountType: "Premium_LRS"
-    sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
-    subnetName: "${CLUSTER_NAME}-mp-1"
----
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-kind: KubeadmConfig
-metadata:
-  name: "${CLUSTER_NAME}-mp-1"
-spec:
-  joinConfiguration:
-    nodeRegistration:
-      name: '{{ ds.meta_data["local_hostname"] }}'
-      kubeletExtraArgs:
-        cloud-provider: azure
-        cloud-config: /etc/kubernetes/azure.json
-        azure-container-registry-config: /etc/kubernetes/azure.json
-  files:
-  - contentFrom:
-      secret:
-        name: ${CLUSTER_NAME}-mp-0-azure-json
-        key: worker-node-azure.json
-    owner: root:root
-    path: /etc/kubernetes/azure.json
-    permissions: "0644"
diff --git a/templates/flavors/machinepool-multiple-subnets/patches/azurecluster-subnets.yaml b/templates/flavors/machinepool-multiple-subnets/patches/azurecluster-subnets.yaml
deleted file mode 100644
index 3ad2d21e456..00000000000
--- a/templates/flavors/machinepool-multiple-subnets/patches/azurecluster-subnets.yaml
+++ /dev/null
@@ -1,18 +0,0 @@
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureCluster
-metadata:
-  name: ${CLUSTER_NAME}
-spec:
-  networkSpec:
-    subnets:
-      - name: control-plane-subnet
-        role: control-plane
-      - name: "${CLUSTER_NAME}-mp-0"
-        role: node
-        natGateway:
-          name: node-natgateway-0
-      - name: "${CLUSTER_NAME}-mp-1"
-        role: node
-        natGateway:
-          name: node-natgateway-1
diff --git a/templates/flavors/machinepool-multiple-subnets/patches/machine-pool-subnet.yaml b/templates/flavors/machinepool-multiple-subnets/patches/machine-pool-subnet.yaml
deleted file mode 100644
index 09521125984..00000000000
--- a/templates/flavors/machinepool-multiple-subnets/patches/machine-pool-subnet.yaml
+++ /dev/null
@@ -1,8 +0,0 @@
----
-kind: AzureMachinePool
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-metadata:
-  name: "${CLUSTER_NAME}-mp-0"
-spec:
-  template:
-    subnetName: "${CLUSTER_NAME}-mp-0"
diff --git a/templates/flavors/machinepool-system-assigned-identity/kustomization.yaml b/templates/flavors/machinepool-system-assigned-identity/kustomization.yaml
deleted file mode 100644
index 6600b421357..00000000000
--- a/templates/flavors/machinepool-system-assigned-identity/kustomization.yaml
+++ /dev/null
@@ -1,6 +0,0 @@
-namespace: default
-resources:
-  - ../base
-  - machine-pool-deployment.yaml
-patchesStrategicMerge:
-  - patches/system-assigned-identity.yaml
diff --git a/templates/flavors/machinepool-system-assigned-identity/machine-pool-deployment.yaml b/templates/flavors/machinepool-system-assigned-identity/machine-pool-deployment.yaml
deleted file mode 100644
index cf3e50b6a6b..00000000000
--- a/templates/flavors/machinepool-system-assigned-identity/machine-pool-deployment.yaml
+++ /dev/null
@@ -1,63 +0,0 @@
----
-apiVersion: cluster.x-k8s.io/v1beta1
-kind: MachinePool
-metadata:
-  name: "${CLUSTER_NAME}-mp-0"
-spec:
-  clusterName: "${CLUSTER_NAME}"
-  replicas: ${WORKER_MACHINE_COUNT}
-  template:
-    spec:
-      clusterName: "${CLUSTER_NAME}"
-      version: "${KUBERNETES_VERSION}"
-      bootstrap:
-        configRef:
-          name: "${CLUSTER_NAME}-mp-0"
-          apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-          kind: KubeadmConfig
-      infrastructureRef:
-        name: "${CLUSTER_NAME}-mp-0"
-        apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-        kind: AzureMachinePool
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureMachinePool
-metadata:
-  name: "${CLUSTER_NAME}-mp-0"
-spec:
-  location: ${AZURE_LOCATION}
-  strategy:
-    type: RollingUpdate
-    rollingUpdate:
-      maxSurge: 25%
-      maxUnavailable: 1
-      deletePolicy: Oldest
-  template:
-    vmSize: ${AZURE_NODE_MACHINE_TYPE}
-    osDisk:
-      osType: "Linux"
-      diskSizeGB: 30
-      managedDisk:
-        storageAccountType: "Premium_LRS"
-    sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
----
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-kind: KubeadmConfig
-metadata:
-  name: "${CLUSTER_NAME}-mp-0"
-spec:
-  joinConfiguration:
-    nodeRegistration:
-      name: '{{ ds.meta_data["local_hostname"] }}'
-      kubeletExtraArgs:
-        cloud-provider: azure
-        cloud-config: /etc/kubernetes/azure.json
-        azure-container-registry-config: /etc/kubernetes/azure.json
-  files:
-  - contentFrom:
-      secret:
-        name: ${CLUSTER_NAME}-mp-0-azure-json
-        key: worker-node-azure.json
-    owner: root:root
-    path: /etc/kubernetes/azure.json
-    permissions: "0644"
diff --git a/templates/flavors/machinepool-system-assigned-identity/patches/system-assigned-identity.yaml b/templates/flavors/machinepool-system-assigned-identity/patches/system-assigned-identity.yaml
deleted file mode 100644
index e7aae3adefb..00000000000
--- a/templates/flavors/machinepool-system-assigned-identity/patches/system-assigned-identity.yaml
+++ /dev/null
@@ -1,7 +0,0 @@
----
-kind: AzureMachinePool
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-metadata:
-  name: "${CLUSTER_NAME}-mp-0"
-spec:
-  identity: SystemAssigned
diff --git a/templates/flavors/machinepool-user-assigned-identity/kustomization.yaml b/templates/flavors/machinepool-user-assigned-identity/kustomization.yaml
deleted file mode 100644
index 2a4f7e06d0a..00000000000
--- a/templates/flavors/machinepool-user-assigned-identity/kustomization.yaml
+++ /dev/null
@@ -1,6 +0,0 @@
-namespace: default
-resources:
-  - ../base
-  - machine-pool-deployment.yaml
-patchesStrategicMerge:
-  - patches/user-assigned-identity.yaml
diff --git a/templates/flavors/machinepool-user-assigned-identity/machine-pool-deployment.yaml b/templates/flavors/machinepool-user-assigned-identity/machine-pool-deployment.yaml
deleted file mode 100644
index cf3e50b6a6b..00000000000
--- a/templates/flavors/machinepool-user-assigned-identity/machine-pool-deployment.yaml
+++ /dev/null
@@ -1,63 +0,0 @@
----
-apiVersion: cluster.x-k8s.io/v1beta1
-kind: MachinePool
-metadata:
-  name: "${CLUSTER_NAME}-mp-0"
-spec:
-  clusterName: "${CLUSTER_NAME}"
-  replicas: ${WORKER_MACHINE_COUNT}
-  template:
-    spec:
-      clusterName: "${CLUSTER_NAME}"
-      version: "${KUBERNETES_VERSION}"
-      bootstrap:
-        configRef:
-          name: "${CLUSTER_NAME}-mp-0"
-          apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-          kind: KubeadmConfig
-      infrastructureRef:
-        name: "${CLUSTER_NAME}-mp-0"
-        apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-        kind: AzureMachinePool
----
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-kind: AzureMachinePool
-metadata:
-  name: "${CLUSTER_NAME}-mp-0"
-spec:
-  location: ${AZURE_LOCATION}
-  strategy:
-    type: RollingUpdate
-    rollingUpdate:
-      maxSurge: 25%
-      maxUnavailable: 1
-      deletePolicy: Oldest
-  template:
-    vmSize: ${AZURE_NODE_MACHINE_TYPE}
-    osDisk:
-      osType: "Linux"
-      diskSizeGB: 30
-      managedDisk:
-        storageAccountType: "Premium_LRS"
-    sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
----
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
-kind: KubeadmConfig
-metadata:
-  name: "${CLUSTER_NAME}-mp-0"
-spec:
-  joinConfiguration:
-    nodeRegistration:
-      name: '{{ ds.meta_data["local_hostname"] }}'
-      kubeletExtraArgs:
-        cloud-provider: azure
-        cloud-config: /etc/kubernetes/azure.json
-        azure-container-registry-config: /etc/kubernetes/azure.json
-  files:
-  - contentFrom:
-      secret:
-        name: ${CLUSTER_NAME}-mp-0-azure-json
-        key: worker-node-azure.json
-    owner: root:root
-    path: /etc/kubernetes/azure.json
-    permissions: "0644"
diff --git a/templates/flavors/machinepool-user-assigned-identity/patches/user-assigned-identity.yaml b/templates/flavors/machinepool-user-assigned-identity/patches/user-assigned-identity.yaml
deleted file mode 100644
index 83c81d94fae..00000000000
--- a/templates/flavors/machinepool-user-assigned-identity/patches/user-assigned-identity.yaml
+++ /dev/null
@@ -1,9 +0,0 @@
----
-kind: AzureMachinePool
-apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
-metadata:
-  name: "${CLUSTER_NAME}-mp-0"
-spec:
-  identity: UserAssigned
-  userAssignedIdentities:
-    - providerID: ${USER_ASSIGNED_IDENTITY_PROVIDER_ID}