Hello @Erik Heeren
Welcome to Microsoft Q&A Platform. Thank you for reaching out & hope you are doing well.
Based on issue we can suggest details below:
Please restore the permissions that were previously removed from the Batch service's service principal related to the VMSS operations. The Deployment
Manager requires the Microsoft.Compute/virtualMachineScaleSets/delete permission to proceed with VMSS deletion.
Additionally, please ensure the Batch service principal has sufficient permissions for creation, updating, and reading operations on VMSS for successful deployment management.
The permissions try restoring through Azure role-based access control (RBAC) or through a custom role that includes the required actions on Microsoft.Compute/virtualMachineScaleSets.
Verify the Batch service principal’s access rights in the subscription/resource group scope where the VMSS are managed.
Please see carefully on any recent permission changes applied to Batch service and rollback those that impact the DM's ability to manage VMSS.
Assign built-in roles like Contributor or Virtual Machine Contributor scoped at the subscription or resource group level where VMSS operations occur. Alternatively, please create a custom role with the exact needed permissions for security.
Assign the role to the Batch service principal (client id '****"') via Azure Portal, CLI, or ARM templates.