Hello Erdinc,
Thank you for sharing the details.
We reviewed the behavior, and this appears to be related to a known Azure platform limitation involving disk controller compatibility between older and newer VM series.
The current Dxads_v5 and older E-series VMs use SCSI-based disk controllers, while the newer v7 VM families use NVMe-based controllers. At this time, Azure does not support direct resize or migration operations when the OS disk controller changes from SCSI to NVMe.
Reference: https://learn.microsoft.com/en-us/azure/virtual-machines/sizes/resize-vm?tabs=portal#limitations
Because of this limitation, the following operations may fail with an “incompatible disk controller type” error:
- Direct VM resize from v5 to v7
- Creating a new v7 VM from an existing OS disk
- Deploying a VM from a snapshot or managed image created from the original VM
Although snapshots and managed images can still be created successfully, the underlying OS disk configuration remains SCSI-based, so Azure validation continues to block deployment to NVMe-only VM families.
How can I resize a SCSI-based VM to a remote NVMe-enabled VM of a different size?
Microsoft has recently introduced support for converting certain VMs from SCSI to NVMe, provided the required prerequisites are met. This includes:
- Supported operating system versions (for example, Windows Server 2019 or later)
- Generation 2 VM configuration
- Target VM size that supports NVMe
- Supported Azure VM families and regions
Microsoft provides guidance and scripts to update both the VM size and disk controller type as part of the conversion process.
Reference: https://techcommunity.microsoft.com/blog/sapapplications/moving-linux-and-windows-from-scsi-to-nvme-with-one-easy-command/4427954
https://learn.microsoft.com/en-us/azure/virtual-machines/enable-nvme-remote-faqs?tabs=windows
If the VM does not meet the required prerequisites for SCSI-to-NVMe conversion, the recommended approach would be:
- Deploy a new Generation 2 VM using the target size
- Use migration methods such as Azure Backup restore, Azure Site Recovery (ASR), Azure Migrate, disk copy, or application-level migration to move workloads and data
- Validate application functionality before cutover
This approach ensures the VM is deployed with the correct NVMe-based disk controller configuration from the beginning and avoids compatibility issues with the newer VM generations.
Reference: https://learn.microsoft.com/en-us/azure/virtual-machines/nvme-overview
Hope this helps! Please let me know if you have any queries.