diff --git a/src/azure-cli/devcontainer-feature.json b/src/azure-cli/devcontainer-feature.json
index 3bc905f47..a634818b6 100644
--- a/src/azure-cli/devcontainer-feature.json
+++ b/src/azure-cli/devcontainer-feature.json
@@ -1,6 +1,6 @@
 {
   "id": "azure-cli",
-  "version": "1.2.8",
+  "version": "1.2.9",
   "name": "Azure CLI",
   "documentationURL": "https://github.com/devcontainers/features/tree/main/src/azure-cli",
   "description": "Installs the Azure CLI along with needed dependencies. Useful for base Dockerfiles that often are missing required install dependencies like gpg.",
diff --git a/src/azure-cli/install.sh b/src/azure-cli/install.sh
index 171c24510..9cc8edef7 100755
--- a/src/azure-cli/install.sh
+++ b/src/azure-cli/install.sh
@@ -98,7 +98,11 @@ install_using_apt() {
     # Import key safely (new 'signed-by' method rather than deprecated apt-key approach) and install
     curl -sSL ${MICROSOFT_GPG_KEYS_URI} | gpg --dearmor > /usr/share/keyrings/microsoft-archive-keyring.gpg
     echo "deb [arch=${architecture} signed-by=/usr/share/keyrings/microsoft-archive-keyring.gpg] https://packages.microsoft.com/repos/azure-cli/ ${VERSION_CODENAME} main" > /etc/apt/sources.list.d/azure-cli.list
-    apt-get update
+
+    if ! (apt-get update); then
+        echo "(!) Failed to update apt cache, removing repository file"
+        rm -f /etc/apt/sources.list.d/azure-cli.list
+    fi
 
     if [ "${AZ_VERSION}" = "latest" ] || [ "${AZ_VERSION}" = "lts" ] || [ "${AZ_VERSION}" = "stable" ]; then
         # Empty, meaning grab the "latest" in the apt repo
@@ -135,7 +139,7 @@ install_using_pip_strategy() {
 
 install_with_pipx() {
     echo "(*) Attempting to install globally with pipx..."
-    local ver="$1"
+    local ver="$1" 
     export 
     local 
 
diff --git a/test/azure-cli/install_azcli_dotnet_dockerindocker_trixie.sh b/test/azure-cli/install_azcli_dotnet_dockerindocker_trixie.sh
new file mode 100644
index 000000000..3f5e6f540
--- /dev/null
+++ b/test/azure-cli/install_azcli_dotnet_dockerindocker_trixie.sh
@@ -0,0 +1,13 @@
+#!/bin/bash
+
+set -e
+
+# Import test library for `check` command
+source dev-container-features-test-lib
+
+check "version" az  --version
+
+check "docker installed" bash -c "type docker"
+
+# Report result
+reportResults
\ No newline at end of file
diff --git a/test/azure-cli/scenarios.json b/test/azure-cli/scenarios.json
index c3a205e68..4c12034b5 100644
--- a/test/azure-cli/scenarios.json
+++ b/test/azure-cli/scenarios.json
@@ -8,7 +8,7 @@
         "extensions": "aks-preview,amg,containerapp"
       }
     }
-  },  
+  },
   "install_extensions": {
     "image": "mcr.microsoft.com/devcontainers/base:jammy",
     "user": "vscode",
@@ -39,7 +39,7 @@
       }
     }
   },
-    "install_bicep_trixie": {
+  "install_bicep_trixie": {
     "image": "mcr.microsoft.com/devcontainers/base:trixie",
     "user": "vscode",
     "features": {
@@ -68,7 +68,7 @@
         "installUsingPython": true
       }
     }
-  },  
+  },
   "install_with_python_3_12_bookworm": {
     "image": "mcr.microsoft.com/devcontainers/python:1-3.12-bookworm",
     "user": "vscode",
@@ -87,5 +87,20 @@
         "installUsingPython": "true"
       }
     }
+  },
+  "install_azcli_dotnet_dockerindocker_trixie": {
+    "image": "mcr.microsoft.com/devcontainers/dotnet:dev-10.0-preview-trixie",
+    "user": "vscode",
+    "features": {
+      "azure-cli": {
+        "version": "latest"
+      },
+      "dotnet": {
+        "aspNetCoreRuntimeVersions": "8.0"
+      },
+      "docker-in-docker": {
+        "moby": false
+      }
+    }
   }
 }
\ No newline at end of file