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For some reason I just realized/noted another thing from Legacy of the Fire Nation book: the way Iroh speaks about Ozai in relation to both fire siblings. When he revealed that sometimes he sees Ozai in Zuko, he says so in a regrettable tone, about what could've been better and wished that was. Meanwhile, when he connected Ozai (and himself) to Azula, he only associated her to the traits he believed to be problematic and should be held accountable.
Furthermore, what he claimed to see in Zuko is surely his own view and opinion BUT what he sees in Azula is what he assumes how Ozai views her too. Iroh doesn't think that Ozai might liked Azula better because of her talent and intelligence but because of the "fury" or whatever that was.
He doesn't see or acknowledge the positive things about Azula and only assumed Ozai liked her better because she mirrors the worst part of himself.
P.S. the first full page here.