Azure Local invoke-AzStackHciArcInitialization fails with 2604 Gold Image
Summary: invoke-AzStackHciArcInitialization Azure Arc registration process is required for Azure Local deployment process.
Symptoms
NOTE: Microsoft released 12. 2604.1003.1005 on May 11th to address this issue.
After imaging the Dell AX nodes with Dell Gold Image version 12.2604 and SBE 5.0.2603, the Arc registration process (Invoke-AzStackHciInitialization) fails with the following error:
“A TargetInvocationException error occurred with the message: ‘Exception has been thrown by the target of an invocation.’”
See screenshots below.


“Bootstrap reported error: Access to the path ‘Microsoft.Azure.Edge.Core.Diagnostics.dll’ is denied.”

Cause
Microsoft released new 12.2604.1003.1002 Solution update on 5/1/2026 with Zero Day update process. It's causing the arc registration to fail when using the latest gold image version 12.2604 and SBE 5.0.2603.
Resolution
Workaround:
1. Reboot the device.
Restart-Computer -Force
2. Once the device comes up again, stop the Zero-Day update service
Stop-Service -Name ZeroDayUpdateService
3. Delete the folder at c:\bootstrap.
Remove-Item -Path C:\bootstrap -Recurse -Force
4. Run the invoke-AzStackHciArcInitialization again.




Additional Information
Azure Local Golden Images (Dell 2603) | Solutions for Microsoft Azure
Register Azure Local with Azure Arc without using Arc Gateway - Azure Local | Microsoft Learn