Hi @Justin Bailey
Welcome to the Microsoft Q&A Platform! Thank you for asking your question here.
I think the issue is related to permissions. First, make sure the Service Principal has the Azure Connected Machine Resource Administrator role at the correct level—either at the resource group or VM level, not just the subscription level. You might also want to try assigning the Contributor role temporarily to ensure it has full permissions to delete the VM. Additionally, check for any locks on the VM or resource group that might prevent deletion. If you’ve recently updated the Service Principal's roles, give it a few minutes for the changes to take effect. Finally, make sure you’re running the azcmagent disconnect command with Administrator privileges on your machine.
If you have any further queries, do let us know
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