Hey,
We updated our ARM template to use the latest schema api version for Microsoft.SqlVirtualMachine/sqlVirtualMachines and registered Automatic Extension Upgrade Preview in the subscription based on [https://blog.hametbenoit.info/2021/02/17/azure-you-can-now-automatically-upgrade-the-extension-of-your-virtual-machine-preview/#.Y8aet3bMKUk
That fixed it for us.
Mateusz