Windows Server 2022 Datacenter Azure Edition VM deactivated in MS Azure due to lack of "Azure Stack Hypervisor"

Question

Multiple Windows Server 2022 Datacenter Azure Edition VMs started to give the following pop-up

We are a bit puzzled as all the servers having this issue are in located in MS Azure (East-US).
We checked the connectivity to KMS and we are able to resolve the KMS. We can reactivate the servers successfully but after next restart the popup reappears and all servers are deactivated again.
What could cause the deactivation and how can we fix this issue?

Answer 1

I've had the following back form Microsoft regarding this. "Our team has discovered that the root of the problem is a glitch in the license activation sequence. Thankfully, this error message is harmless and won't affect your system's performance. Rest assured, we're actively working on a solution, which will be included in the upcoming monthly update."

Answer 2

we have VMs in UK south that are showing the same behaviour.. slmgr.vbs /xpr switch shows activation valid for another 6 months - but windows is continually flagging this deactivation

Answer 3

We have the same issue "Windows Server 2022 Datacenter Azure Edition VM is deactivated".

• UK South
• Source image publisher MicrosoftWindowsServer
• Source image offer WindowsServer
• Source image plan 2022-datacenter-azure-edition

Answer 4

Same issue in West Europe