Hello @Dharati Parmar,
The issue you are experiencing with the Azure Resource Provider Microsoft.SqlVirtualMachine returning a GatewayTimeout for a specific SQL VM resource in East US 2 may indicate a backend problem specific to that resource.
This is particularly relevant since the SQL IaaS Agent Extension shows as successfully provisioned, and the resource provider is registered at the subscription level, which are both necessary for proper functionality.
In general, if the SQL Server VM is not registered with the SQL IaaS Agent extension, you might encounter issues like the one described.
To resolve such issues, ensure that your SQL Server VM is properly registered with the SQL IaaS Agent extension, which can be done through the Azure portal or using Azure CLI commands. If problems persist, consider deleting and reinstalling the SQL IaaS Agent extension if it is in a failed state, as this can sometimes resolve underlying issues with the resource provider.
Additionally, if you are seeing errors related to the resource not being found, it may indicate that the SQL virtual machine resource is not properly linked to the underlying VM resource, which can also lead to timeouts and failures in API calls
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