An Azure internet of things security solution including hardware, operating system, and cloud components.
Underlying this might be the same issue you see when hosting a RADIUS server on an Azure instance, Azure block out of order IP fragments. So it can succeed, but only if those fragments sent by the client outside of Azure arrive in order at the boundary of the vNet.
For non-client certificates authentications (such as PEAP and TTLS) IP fragments from the client are usually not produced whilst from the RADIUS server, it is configured typically to frame EAP messages at smaller sizes to avoid the need for IP fragmentation.
With EAP-TLS this is different, there is no machinery in EAP allowing the server end to tell the client end "send smaller frames".
If this is the case, one workaround to try is to lower the MTU at the supplicant end to less than 1000 bytes and see if that helps.
If you control the wpa_supplicant (or hostapd) end, and can run a fork, I might be able to help out, contact me privately.