In-place Upgrade Azure VM withe message 0x8007000D - 0x20006 The installation failed in the SAFE_OS phase with an error during Replicate_OC operation

HI Folks,

I'm attempting to upgrade an Azure WIndows Server 2016 VM to Server 2022 following the steps in the articlet

https://learn.microsoft.com/en-us/azure/virtual-machines/windows-in-place-upgrade?tryIt=true&source=docs#code-try-0

Upgrade fails with message: "0x8007000D - 0x20006 The installation failed in the SAFE_OS phase with an error during Replicate_OC operation"

C: drive has over 150 GB of free space. It is also up to date with all MS patches.

I have tried the following:

1.Use Windows Update Troubleshooter.

open Settings ，Go to Update & Security > Troubleshoot

In the right pane, select Windows Update and click Run the troubleshooter.

2.Reset Windows Update Components.

Press Windows + R to invoke Run window.

Input cmd and press Enter to run Command Prompt with administrator.

Type the following command and hit Enter key after each to stop the Windows Update components,

net stop wuauserv

net stop cryptsvc

net stop bits

net stop msiserver

Now, you need to rename SoftwareDistribution and Catroot2 folders.

Type the following command line and press Enter after each.

ren C:\Windows\SoftwareDistribution SoftwareDistribution.old

ren C:\Windows\System32\catroot2 Catroot2.old

After renaming the folders, restarted the involved components mentioned above. Enter the following command. Again, do not forget to press Enter after each command.

net start wuauserv

net start cryptsvc

net start bits

net start msiserver

5.Clear Windows Update Cache.

Sometimes, the cached Windows Update files might be corrupted or incomplete, which could prevent Windows update from installing and cause 0x8007001F - 0x20006 error.

In this case, you need to clear your Windows update cache, and try downloading and installing updates again.

You need to delete $Windows.~BT folder in File Explorer.

6.Run Windows Updates in Clean Boot.

Next, choose to hide all Microsoft services box.

Then, click the "Disable All" button.

Next, open the Startup tab and click Open Task Manager.

In the Startup tab, select each item and click Disable.

Close the task manager.

In the "System Configuration" window, click "OK" and restart your PC.

Regards,

Adam