This is because there is no fetch within the cursor loop, hence the fetch_status will always be 0.
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Here is the correct structure for a cursor

The Azure S tier instances are very low spec and are no match for a multi-core laptop in any kind of performance testing 😉
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Quick question, have you checked if the SkinID for the image points to a valid skin file in the theme directory on the new instance?
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Here is a simple solution
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USE TEEST;
GO
SET NOCOUNT ON;

DECLARE @TMSG VARCHAR(MAX) = '{ "Name": "David", "Gender": "Male", "Address": "125 Gambler Lane" }