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I could be wrong/naive but aren't most DDOS attackers using a bunch of cheap VMs on the cloud to create a distributed network to attack ? Can these providers not do a better job of identifying the culprits and shutting them down ? I doubt it is easy to create Distributed-DOS if access to cheap VMs are restricted.

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Most sophisticated ones uses bots on residential devices. Ie malware infected, or visiting a site with abusive code.

They don't use cloud providers, they use botnets of compromised computers/IoT devices.

What's the most common malware those computers are infected with, and most common way they got infected to begin with?

My educated guess: The most common way to get infected is via email.

IoT devices get infected because they usually use common software stacks that go un patched. There's crawlers always doing their thing and looking to pop these.

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