Based on a quick Google search for "Azure Compute Node":
> A node is an Azure virtual machine (VM) or cloud service VM
> The terms node and VM are used interchangeably occasionally
> Azure Batch creates and manages a pool of compute nodes (virtual machines)
> In an Azure Batch workflow, a compute node (or node) is a virtual machine that processes a portion of your application's workload
So no, seems Azure Compute Nodes are VMs, not bare metal.