Ubuntu VM Issue while creating

Question

Ubuntu VM Issue while creating

Rasitha Mudugama Hewage 140

Hi ,

I am receiving following error while deploy VM on azure local cluster.

please advice us.

Ankit Yadav 6,345 Reputation points Microsoft External Staff Moderator

2025-12-03T13:26:50.3333333+00:00
Hello @Rasitha Mudugama Hewage ,

Unfortunately, the error message shared is quite generic, so we won't be able to help out much with the error snippet and I've reached out to you for more details over Private Message.

However please do verify that you are meeting all the pre-requisites listed out here for creating VM on Azure Local:

Access to an Azure subscription with the appropriate RBAC role and permissions assigned. For more information, see RBAC roles for Azure Local VM management.

Access to a resource group where you want to provision the VM.

Access to one or more VM images on your Azure Local. These VM images could be created by one of the following procedures:

VM image starting from an image in Azure Marketplace.

VM image starting from an image in Azure Storage account.

VM image starting from an image in a local share.

A custom location for your Azure Local that you'll use to provision VMs. The custom location will also show up in the Overview page for Azure Local.

Source: https://learn.microsoft.com/en-us/azure/azure-local/manage/create-arc-virtual-machines?view=azloc-2511&tabs=azureportal#prerequisites

1 answer

Your answer

Ankit Yadav 6,345 Reputation points Microsoft External Staff Moderator

2025-12-03T13:26:50.3333333+00:00

Hello @Rasitha Mudugama Hewage ,

Unfortunately, the error message shared is quite generic, so we won't be able to help out much with the error snippet and I've reached out to you for more details over Private Message.

However please do verify that you are meeting all the pre-requisites listed out here for creating VM on Azure Local:

Access to an Azure subscription with the appropriate RBAC role and permissions assigned. For more information, see RBAC roles for Azure Local VM management.

Access to a resource group where you want to provision the VM.

Access to one or more VM images on your Azure Local. These VM images could be created by one of the following procedures:

VM image starting from an image in Azure Marketplace.

VM image starting from an image in Azure Storage account.

VM image starting from an image in a local share.

A custom location for your Azure Local that you'll use to provision VMs. The custom location will also show up in the Overview page for Azure Local.

Source: https://learn.microsoft.com/en-us/azure/azure-local/manage/create-arc-virtual-machines?view=azloc-2511&tabs=azureportal#prerequisites

Answer 1

Root Cause:-

The VM creation didn’t go through because the NSG failed to set up. The error message said: “The moc-operator network security group service returned an error while reconciling: AddOrUpdateNetworkSecurityGroup not implemented for non-NC provider: Not Implemented (Code: NotImplemented).

This is because NSGs required SDN with NC (Network Controller) and your cluster is running in Hyper-V networking mode and the moc-operator can't process NSG deployment request in non-SDN environment.

Reference: https://learn.microsoft.com/en-us/azure/azure-local/manage/sdn-troubleshooting?view=azloc-2511#erro…

Solution/Fix:

How to fix the issue:

In order to create the VM with this requirement, you can follow below order to fix the issue :

Enable SDN Integration (Network Controller): Enable Software-Defined Networking (SDN) enabled by Azure Arc on Azure Local using a PowerShell Act…
Create Logical Network: Create logical networks for Azure Local VMs for multi-rack deployments (preview) - Azure Local | Mi…
Create Virtual Network: Create virtual networks for multi-rack deployments of Azure Local (preview) - Azure Local | Microso…
Create NSG (Network Security Group): Create network security groups, network security rules, default network access policies on Azure Lo…
Attach NSG to the subnet.
Prepare the OS image (Ubuntu in your case): Create Azure Local VM images for multi-rack deployments using Azure Storage account (preview) - Azu…
Create the Virtual Machine: Create Azure Local virtual machines enabled by Azure Arc - Azure Local | Microsoft Learn

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Ubuntu VM Issue while creating

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