Azure storage error: “The specified blob already exists”, but it doesn't?

This is a known issue with development storage. This happens when there are multiple threads launched to upload the blocks (which constitute the blob). Basically what is happening is that development storage makes use of SQL Server as the data store.

Now first thing it does is makes an entry into the table which stores blob information. If there are multiple threads working then all of these threads will try to perform the same operation. After the first thread succeeds, the subsequent threads will result in this exception being raised.

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