The correct core count is the one shown in the Azure documentation. The actual core count of the physical CPU is not relevant. Dedicated VM's are guaranteed to be dedicated to you and have no-one else using them, this does not mean you get access to all of the physical hardware. The machine will have some cores and memory allocated to running the hypervisor and Azure services that you will not see.
The Dv3 series do have Hyperthreading enabled.