diff --git a/images/capi/Makefile b/images/capi/Makefile
index e01092d5a6..65f68a7682 100644
--- a/images/capi/Makefile
+++ b/images/capi/Makefile
@@ -655,10 +655,6 @@ build-azure-vhd-rhel-8: ## Builds RHEL 8 VHD image for Azure
 build-azure-vhd-windows-2019-containerd: ## Builds for Windows Server 2019 with containerd
 build-azure-vhd-windows-2022-containerd: ## Builds for Windows Server 2022 with containerd
 build-azure-sig-windows-annual-containerd: ## Builds for Windows Server Annual Channel with containerd
-build-azure-sig-23h2-datacenter-core: ## Builds for Windows Server 23h2 Datacenter Core in Shared Image Gallery
-build-azure-sig-23h2-datacenter-core-g2: ## Builds for Windows Server 23h2 Datacenter Core G2 in Shared Image Gallery
-build-azure-vhd-23h2-datacenter-core: ## Builds for Windows Server 23h2 Datacenter Core with containerd
-build-azure-vhd-23h2-datacenter-core-g2: ## Builds for Windows Server 23h2 Datacenter Core G2 with containerd
 build-azure-sig-centos-7-gen2: ## Builds CentOS Gen2 managed image in Shared Image Gallery
 build-azure-sig-mariner-2-gen2: ## Builds Azure Linux 2 Gen2 managed image in Shared Image Gallery
 build-azure-sig-azurelinux-3-gen2: ## Builds Azure Linux 3 Gen2 managed image in Shared Image Gallery
@@ -869,10 +865,6 @@ validate-azure-sig-ubuntu-2404: ## Validates Ubuntu 24.04 Azure managed image in
 validate-azure-sig-windows-2019-containerd: ## Validate Windows Server 2019 with containerd Azure managed image in Shared Image Gallery Packer config
 validate-azure-sig-windows-2022-containerd: ## Validate Windows Server 2022 with containerd Azure managed image in Shared Image Gallery Packer config
 validate-azure-sig-windows-annual-containerd: ## Validate Windows Server Annual Channel with containerd Azure managed image in Shared Image Gallery Packer config
-validate-azure-sig-23h2-datacenter-core: ## Validate for Windows Server 23h2 Datacenter Core in Shared Image Gallery
-validate-azure-sig-23h2-datacenter-core-g2: ## Validate for Windows Server 23h2 Datacenter Core G2 in Shared Image Gallery
-validate-azure-vhd-23h2-datacenter-core: ## Validate for Windows Server 23h2 Datacenter Core with containerd
-validate-azure-vhd-23h2-datacenter-core-g2: ## Validate for Windows Server 23h2 Datacenter Core G2 with containerd
 validate-azure-vhd-centos-7: ## Validates CentOS 7 VHD image Azure Packer config
 validate-azure-vhd-mariner-2: ## Validates Azure Linux 2 VHD image Azure Packer config
 validate-azure-vhd-azurelinux-3: ## Validates Azure Linux 3 VHD image Azure Packer config
diff --git a/images/capi/azure_targets.sh b/images/capi/azure_targets.sh
index 24d501b792..952fc26c7f 100644
--- a/images/capi/azure_targets.sh
+++ b/images/capi/azure_targets.sh
@@ -1,8 +1,8 @@
-VHD_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 centos-7 mariner-2 azurelinux-3 rhel-8 windows-2019-containerd windows-2022-containerd 23h2-datacenter-core"
-VHD_CI_TARGETS="ubuntu-2204 ubuntu-2404 mariner-2 windows-2019-containerd windows-2022-containerd 23h2-datacenter-core"
-SIG_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 centos-7 mariner-2 azurelinux-3 rhel-8 windows-2019-containerd windows-2022-containerd flatcar 23h2-datacenter-core"
-SIG_CI_TARGETS="ubuntu-2204 ubuntu-2404 mariner-2 windows-2019-containerd windows-2022-containerd flatcar 23h2-datacenter-core"
+VHD_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 centos-7 mariner-2 azurelinux-3 rhel-8 windows-2019-containerd windows-2022-containerd"
+VHD_CI_TARGETS="ubuntu-2204 ubuntu-2404 mariner-2 windows-2019-containerd windows-2022-containerd"
+SIG_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 centos-7 mariner-2 azurelinux-3 rhel-8 windows-2019-containerd windows-2022-containerd flatcar"
+SIG_CI_TARGETS="ubuntu-2204 ubuntu-2404 mariner-2 windows-2019-containerd windows-2022-containerd flatcar"
 SIG_GEN2_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 centos-7 mariner-2 azurelinux-3 flatcar"
 SIG_GEN2_CI_TARGETS="ubuntu-2204 ubuntu-2404 mariner-2 flatcar"
-SIG_CVM_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 windows-2019-containerd windows-2022-containerd 23h2-datacenter-core"
-SIG_CVM_CI_TARGETS="ubuntu-2204 ubuntu-2404 windows-2022-containerd 23h2-datacenter-core"
+SIG_CVM_TARGETS="ubuntu-2004 ubuntu-2204 ubuntu-2404 windows-2019-containerd windows-2022-containerd"
+SIG_CVM_CI_TARGETS="ubuntu-2204 ubuntu-2404 windows-2022-containerd"
diff --git a/images/capi/packer/azure/23h2-datacenter-core-g2.json b/images/capi/packer/azure/23h2-datacenter-core-g2.json
deleted file mode 100644
index ba736eff3a..0000000000
--- a/images/capi/packer/azure/23h2-datacenter-core-g2.json
+++ /dev/null
@@ -1,16 +0,0 @@
-{
-  "additional_registry_images": "false",
-  "additional_registry_images_list": "",
-  "build_name": "23h2-datacenter-core-g2",
-  "distribution": "windows",
-  "distribution_version": "23h2",
-  "distribution_release": "23h2-datacenter-core-g2",
-  "image_offer": "WindowsServer",
-  "image_publisher": "MicrosoftWindowsServer",
-  "image_sku": "23h2-datacenter-core-g2",
-  "image_version": "latest",
-  "load_additional_components": "false",
-  "runtime": "containerd",
-  "vm_size": "Standard_D4s_v3",
-  "windows_updates_kbs": ""
-}
diff --git a/images/capi/packer/azure/23h2-datacenter-core.json b/images/capi/packer/azure/23h2-datacenter-core.json
deleted file mode 100644
index 6c06882e77..0000000000
--- a/images/capi/packer/azure/23h2-datacenter-core.json
+++ /dev/null
@@ -1,16 +0,0 @@
-{
-  "additional_registry_images": "false",
-  "additional_registry_images_list": "",
-  "build_name": "23h2-datacenter-core",
-  "distribution": "windows",
-  "distribution_version": "23h2",
-  "distribution_release": "23h2-datacenter-core",
-  "image_offer": "WindowsServer",
-  "image_publisher": "MicrosoftWindowsServer",
-  "image_sku": "23h2-datacenter-core",
-  "image_version": "latest",
-  "load_additional_components": "false",
-  "runtime": "containerd",
-  "vm_size": "Standard_D4s_v3",
-  "windows_updates_kbs": ""
-}
diff --git a/images/capi/packer/azure/scripts/init-sig.sh b/images/capi/packer/azure/scripts/init-sig.sh
index c873ca85ef..b0ee80fd45 100755
--- a/images/capi/packer/azure/scripts/init-sig.sh
+++ b/images/capi/packer/azure/scripts/init-sig.sh
@@ -84,14 +84,8 @@ case ${SIG_TARGET} in
     create_image_definition ${SIG_TARGET} "win-2022-containerd" "V1" "Windows"
   ;;
   windows-annual-containerd)
-    create_image_definition ${SIG_TARGET} "win-annual-containerd" "V1" "Windows"
-  ;;
-  23h2-datacenter-core)
     create_image_definition ${SIG_TARGET} "23h2-datacenter-core" "V1" "Windows"
   ;;
-  23h2-datacenter-core-g2)
-    create_image_definition ${SIG_TARGET} "23h2-datacenter-core-g2" "V1" "Windows"
-  ;;
   windows-2019-containerd-cvm)
     SKU="windows-2019-cvm-containerd"
     create_image_definition ${SKU} ${SKU} "V2" "Windows" ${SECURITY_TYPE_CVM_SUPPORTED_FEATURE}
diff --git a/images/capi/packer/azure/windows-annual-containerd.json b/images/capi/packer/azure/windows-annual-containerd.json
index 8bfe24d57a..18f25ffe83 100644
--- a/images/capi/packer/azure/windows-annual-containerd.json
+++ b/images/capi/packer/azure/windows-annual-containerd.json
@@ -3,7 +3,12 @@
   "additional_registry_images_list": "",
   "build_name": "windows-annual-containerd",
   "distribution": "windows",
-  "distribution_version": "annual",
+  "distribution_version": "23h2",
+  "distribution_release": "23h2-datacenter-core",
+  "image_offer": "WindowsServer",
+  "image_publisher": "MicrosoftWindowsServer",
+  "image_sku": "23h2-datacenter-core",
+  "image_version": "latest",
   "load_additional_components": "false",
   "runtime": "containerd",
   "shared_image_gallery_name": "{{env `GALLERY_NAME`}}",