TiP VM Creation Fail with VM status blob is found but not yet populated.

Hello @Daniel Madrigal Diaz

Thanks for posting, and sorry to hear you're running into this during your TiP session provisioning failures mid-session are frustrating, especially when you're working under time constraints.

The error "VM status blob is found but not yet populated" essentially means the Azure Guest Agent hasn't been able to communicate back to the Azure fabric after the VM was created. The status blob is the heartbeat mechanism the platform uses to confirm the guest OS is healthy and the VM Agent is up. When it's "found but not yet populated," the VM was allocated and the blob was created, but the Agent never wrote its initial status to it which causes the provisioning to time out and fail.

In a TiP (Testing in Production) session context, there's an added wrinkle: your VM is pinned to a specific hardware cluster. This means the usual fallback of retrying across multiple clusters doesn't apply, and if there's a transient issue on that particular host node, provisioning is more likely to fail consistently rather than self-heal.

• Reapply (non-destructive, try first) Navigate to the VM that's stuck in the Failed state → Under Support + Troubleshooting, select Redeploy + Reapply → Choose the Reapply option. You can also use the REST API or the az vm reapply CLI command. https://learn.microsoft.com/en-us/troubleshoot/azure/virtual-machines/windows/vm-stuck-in-failed-state?tabs=portal
• Check Guest Agent / WireServer Connectivity Use a tool like PsPing to verify the VM can connect to 168.63.129.16 on ports 80 and 32526. If this IP is blocked by a firewall inside the VM, the Guest Agent will show unexpected behavior across many scenarios.
• Use Boot Diagnostics / Serial Console Enable boot diagnostics to access the serial log, which surfaces provisioning events and helps pinpoint exactly where in the OS boot or agent initialization sequence the failure occurred. https://learn.microsoft.com/en-us/troubleshoot/azure/virtual-machines/linux/troubleshoot-deployment-new-vm-linux
• Run VM Assist VM Assist is a PowerShell script that diagnoses Guest Agent issues and checks general VM health including firewall rules, running services, drivers, network adapter settings, and installed Windows Updates.
  https://learn.microsoft.com/en-us/troubleshoot/azure/virtual-machines/windows/windows-azure-guest-agent-tools-vmassist
• Redeploy (if node is unhealthy) If reapply doesn't resolve the issue, redeploy the VM to a new node using Support + Troubleshooting > Redeploy + Reapply > Redeploy.
  For TiP specifically, this may require ending the current TiP session and starting a new one (which will pin to a different host). https://learn.microsoft.com/en-us/answers/questions/2283002/the-virtual-machine-is-in-a-failed-state