Its not supported.
Please upvote this feedback https://feedback.azure.com/forums/216843-virtual-machines/suggestions/32815405-please-add-wait-condition-capabilities-in-arm-temp
so that product teams takes this into backlog and work on it.
But you have a lengthy workaround. You can have a custom script extension along with the cloud init.
In the custom script extension , you can have a loop to check for the required condition for the specified time.
Once the conditions achieved, Then you can exit the script with 0 exit code. If that times out or fails, Then exit the script with failure exit code. With that you can identify in ARM template