Merge pull request #18224 from sipastak/known-issues-2506

2506 known issues

Author: prmerger-automator[bot]

azure-local/known-issues.md

@@ -2,14 +2,104 @@
 title: Release notes with fixed and known issues in Azure Local
 description: Read about the known issues and fixed issues in Azure Local.
 author: alkohli
-ms.topic: release-notes
-ms.date: 06/20/2025
+ms.topic: conceptual
+ms.date: 06/30/2025
 ms.author: alkohli
 ms.reviewer: alkohli
 ---
 
 # Known issues in Azure Local
 
+This article identifies critical known issues and their workarounds in Azure Local.
+
+These release notes are continuously updated, and as critical issues requiring a workaround are discovered, they're added. Before you deploy your Azure Local instance, carefully review the information contained here.
+
+> [!IMPORTANT]
+> For information about supported update paths for this release, see [Release information](./release-information-23h2.md#about-azure-local-releases).
+
+For more information about new features in this release, see [What's new for Azure Local](whats-new.md).
+
+::: moniker range="=azloc-2506"
+
+## Known issues for version 2506
+
+For the 2506 release of Azure Local, Microsoft released two security updates: one for existing deployments and another for new deployments. The following table provides information about different deployment types, their corresponding security updates, and OS builds:
+
+| Deployment type  | Solution version  | OS build  |
+|---------|---------|---------|
+| Existing deployments    | 11.2506.1001.28          | 25398.1665         |
+| New deployments    | 12.2506.1001.29         | 26100.4349        |
+
+> [!IMPORTANT]
+> The new deployments of this software use the **12.2506.1001.29** build. You can also update an existing deployment from 2504 using **11.2506.1001.28**.
+
+Release notes for this version include the issues fixed in this release, known issues in this release, and release note issues carried over from previous versions.
+
+> [!NOTE]
+> For detailed remediation for common known issues, see the [Azure Local Supportability](https://github.com/Azure/AzureStackHCI-Supportability) GitHub repository.
+
+## Fixed issues
+
+The following table lists the fixed issues in this release:
+
+|Feature|Issue|Workaround/Comments|
+|------|------|----------|
+| Azure Local VMs <!--30035765-->| When creating a VM, there is no option to prompt for password. | Password is prompted when `--password` is not explicitly passed. This provides customers a more secure way to input password.  |
+| Azure Local VMs <!--32130105--> | When creating a VM, `--admin-username` and `--password` are required for guest management enablement. | Unbound requirement for guest management enablement. Now, when creating a VM, `--admin-username` and `--password` are required unless the OS disk is provided or the `--authentication-type` is `ssh`. |
+| Azure Local VMs <!--32417179--> | In some cases, VM update operations were incorrectly shown as successful on the Azure portal even though they had failed in the underlying infrastructure.  | Improved error reporting to ensure the Azure portal accurately reflects the true status of VM update operations. |
+| Azure Local VMs <!--32503885--> | Deleting a logical network with an attached AKS cluster would leave behind orphaned on-premises resources.  | Properly detects and handles AKS cluster dependencies during logical network deletion to prevent resource leaks. |
+| Azure Local VMs <!--32698064--> | Unable to create VHDs using  `--download-url` | Correctly initializes VHD property before assigning the download URL, ensuring successful disk creation. |
+| Azure Local VMs <!--32195527--> | In some cases, deleting a VM from multiple platforms (Azure portal, Windows Admin Center, Failover Cluster Manager) could cause its high availability (HA) status to remain stuck in a pending state. | Correctly updates the HA status when the VM is removed from the cluster, preventing it from getting stuck. |
+| Azure Local VMs <!--32255591--> | After creating a VM, a temporary ISO file used for guest agent setup was sometimes left attached. | ISO file is automatically removed after VM creation. |
+| Azure Local VMs <!--30846971--> | In some cases, VM deletions did not properly clean up associated network interfaces or disks, leaving behind orphaned resources that blocked reuse of IP addresses and storage. | All dependent resources are correctly detached and deleted when a VM is deleted, preventing resource leaks. |
+| Azure Local VMs <!--30651739--> | Improved validation for the IP address of the infrastructure range.  |  |
+| Azure Local VMs <!--32078730--> | Improved behavior for loading PowerShell modules.  |  |
+| Azure Local VMs <!--32311676--> | Added flag to enable decryption of volumes when re-attaching them.  |  |
+
+## Known issues in this release
+
+The following table lists the known issues in this release:
+
+|Feature  |Issue  |Workaround  |
+|---------|---------|---------|
+| Security <!--30348397--> |  Azure Local might face an issue during normal operations (for example, Update, Repair) while using Defender for Endpoint and when the **Restrict App Execution** setting is enabled for one or more servers in the deployment.  | Disable the **Restrict App Execution** setting in the Defender portal and reboot. If the issue persists, [open a support case](/azure/azure-portal/supportability/how-to-create-azure-support-request). |
+| Deployment <!--33390832--> | In rare instances, deployment fails with errors during validation that state that the mandatory Arc extensions are not yet installed. | If you face this issue, retry the deployment. |
+| Deployment <!--33392176--> |  Deployment fails with PSTerminatingError. | If you face this issue, retry the deployment. |
+| Update <!--33470082--> |  Solution update fails with the error: `Unable to install solution update "11.2506.1001.24" - Type 'UpdateFOD' of Role 'ComposedImageUpdate' raised an exception.` | For detailed steps on how to resolve this issue, see the [Troubleshooting guide](https://github.com/Azure/AzureLocal-Supportability/blob/main/TSG/Update/SolutionUpdate-UpdateFOD.md). |
+| Deployment <!--33471589--> |  After Azure portal deployment, SConfig network settings shows the error: `Set-SCfNetworksetting : Cannot bind argument to parameter 'Value' because it is null.` | There's no known workaround in this release. |
+| Update <!--33448368--> |  Cluster-Aware Updating runs might fail with the error:<br>`Type 'SBEPartnerConfirmCauDone' of Role 'SBE' raised an exception:<br>SBE_MsftCIOnlyCommon_CommonForTesting_4.2.2504.16: ErrorID: SBE-CAU-RUNNING-AFTER-DONE -- CAU run is still in progress when it should be done. See https://aka.ms/AzureLocal/SBE/CauHelp for help. Review full Get-CauRun output it identify if it is progressing or stuck. Wait for it to complete if progressing.` | Wait for CAU run to complete (wait for `Get-CauRun` to report `RunNotInProgress`) and resume the update. |
+
+## Known issues from previous releases
+
+The following table lists the known issues from previous releases:
+
+|Feature  |Issue  |Workaround  |
+|---------|---------|---------|
+| Add server <br> Repair server <!--32447442--> | The `Add-server` and `Repair-server` cmdlets fail with the error: <br> `Cluster Build ID matches node to add's Build ID`. | Use the OS image of the same solution version as that running on the existing cluster. To get the OS image, identify and download the image version from this [Release table](https://github.com/Azure-Samples/AzureLocal/blob/main/os-image/os-image-tracking-table.md). |
+| Deployment <!--33008717--> | In this release and previous releases, registration fails with the following error when you try to register Azure Local machines with Azure Arc: <br>`AZCMAgent command failed with error: >> exitcode: 42. Additional Info: See https://aka.ms/arc/azcmerror`. | For detailed steps on how to resolve this issue, see the [Troubleshooting guide](https://github.com/Azure/AzureLocal-Supportability/blob/users/kagoyal/tsg-error42/TSG/ArcRegistration/TSG%20%7C%20Arc%20registration%20failing%20with%20error%2042.md). |
+| Azure Local VM management | The Mochostagent service might appear to be running but can get stuck without updating logs for over a month. You can identify this issue by checking the service logs in `C:\programdata\mochostagent\logs` to see if logs are being updated. | Run the following command to restart the mochostagent service: `restart-service mochostagent`. |
+| Update | When viewing the readiness check results for an Azure Local instance via the Azure Update Manager, there might be multiple readiness checks with the same name.  |There's no known workaround in this release. Select **View details** to view specific information about the readiness check. |
+| Update | There's an intermittent issue in this release when the Azure portal incorrectly reports the update status as **Failed to update** or **In progress** though the update is complete.  |[Connect to your Azure Local instance](./update/update-via-powershell-23h2.md#connect-to-your-azure-local) via a remote PowerShell session. To confirm the update status, run the following PowerShell cmdlets: <br><br> `$Update = get-solutionupdate`\| `? version -eq "<version string>"`<br><br>Replace the version string with the version you're running. For example, "10.2405.0.23". <br><br>`$Update.state`<br><br>If the update status is **Installed**, no further action is required on your part. The Azure portal refreshes the status correctly within 24 hours. <br> To refresh the status sooner, follow these steps on one of the nodes. <br>Restart the Cloud Management cluster group.<br>`Stop-ClusterGroup "Cloud Management"`<br>`Start-ClusterGroup "Cloud Management"`|
+| Add server <!--26852600--> |In this release and previous releases, when adding a machine to the system, isn't possible to update the proxy bypass list string to include the new machine. Updating environment variables proxy bypass list on the hosts won't update the proxy bypass list on Azure resource bridge or AKS. |There's no workaround in this release. If you encounter this issue, contact Microsoft Support to determine next steps.|
+| Azure Local VM management |Arc Extensions on Azure Local VMs stay in "Creating" state indefinitely. | Sign in to the VM, open a command prompt, and type the following: <br> **Windows**: <br> `notepad C:\ProgramData\AzureConnectedMachineAgent\Config\agentconfig.json` <br> **Linux**: <br> `sudo vi /var/opt/azcmagent/agentconfig.json` <br>  Next, find the `resourcename` property. Delete the GUID that is appended to the end of the resource name, so this property matches the name of the VM. Then restart the VM.|
+| Azure Local VM management |Restart of Azure Local VM operation completes after approximately 20 minutes although the VM itself restarts in about a minute.| There's no known workaround in this release.  |
+| Azure portal <!--25741164--> |In some instances, the Azure portal might take a while to update and the view might not be current.| You might need to wait for 30 minutes or more to see the updated view. |
+| Azure Local VM management |Deleting a network interface on an Azure Local VM from Azure portal doesn't work in this release.| Use the Azure CLI to first remove the network interface and then delete it. For more information, see [Remove the network interface](/cli/azure/stack-hci-vm/nic#az-stack-hci-vm-nic-remove) and see [Delete the network interface](/cli/azure/stack-hci-vm/network/nic#az-stack-hci-vm-network-nic-delete).|
+| Update | When updating the Azure Local instance via the Azure Update Manager, the update progress and results may not be visible in the Azure portal.| To work around this issue, on each node, add the following registry key (no value needed):<br><br>`New-Item -Path "HKLM:\SYSTEM\CurrentControlSet\Services\HciCloudManagementSvc\Parameters" -force`</br><br> Then on one of the nodes, restart the Cloud Management cluster group. </br><br>`Stop-ClusterGroup "Cloud Management"`</br><br>`Start-ClusterGroup "Cloud Management"`</br><br> This won't fully remediate the issue as the progress details may still not be displayed for a duration of the update process. To get the latest update details, you can [Retrieve the update progress with PowerShell](./update/update-via-powershell-23h2.md#step-6-track-update-progress). |
+| Security <!-- 56969147 --> | When fixing the compliance for the minimum password length rule, even after you've changed the minimum password length on the Azure Local host to 14, you continue to see it as non-compliant in Azure policy.  | You can verify the length of the password using the `net accounts` cmdlet. In the output, find **Minimum password length** to see the value. |
+| Upgrade <!--33417006-->| The upgrade banner is currently available for users using the Azure Government cloud. However, the environment checker fails, suggesting that Azure Government clouds are not supported. | There's no workaround in this release. If you encounter this issue, contact Microsoft Support to determine next steps. |
+
+## Known and expected behaviors
+
+The following table lists the known and expected system behaviors that shouldn't be considered as bugs or limitations.
+
+| Feature  | Behavior  |  Workaround |
+|---------|---------|---------|
+| Operating system  | Restoring the registry using *RegBack* isn't supported on Azure Local. This operation can remove the Lifecycle Manager (LCM) and Microsoft On-premises Cloud (MOC) settings on your Azure Local instance, which can corrupt the solution.  | |
+| Azure Local VM management| Using an exported Azure VM OS disk as a VHD to create a gallery image for provisioning an Azure Local VM is unsupported. | Run the command `restart-service mochostagent` to restart the mochostagent service. |
+
+::: moniker-end
+
 ::: moniker range="=azloc-2505"
 
 This article identifies critical known issues and their workarounds in Azure Local.