Installation of Hyper-V mover agent fails on Azure Local cluster node with error "SOFTWARE RESTRICTION POLICY"

Summary: Installation of Hyper-V mover agent fails on Azure Local cluster node with error "SOFTWARE RESTRICTION POLICY"

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Symptoms

The installation of Hyper-V mover agent fails on Azure Local cluster nodes with the following error in the hyperv-agent log:

MSI (s) (EC:A4) [10:25:12:442]: Machine policy value 'DisableUserInstalls' is 0
MSI (s) (EC:A4) [10:25:12:446]: Note: 1: 2203 2: C:\Windows\Installer\inprogressinstallinfo.ipi 3: -2147287038 
MSI (s) (EC:A4) [10:25:12:446]: SRSetRestorePoint skipped for this transaction.
MSI (s) (EC:A4) [10:25:12:446]: Note: 1: 1402 2: HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer 3: 2 
MSI (s) (EC:A4) [10:25:12:446]: File will have security applied from OpCode.
MSI (s) (EC:A4) [10:25:12:539]: SOFTWARE RESTRICTION POLICY: Verifying package --> 'C:\Users\ppdmsid\AppData\Local\Temp\5c8b7bf1-268f-46d0-980b-bd2f10d5293b\hyperv-agent-19.19.0-15.msi' against software restriction policy
MSI (s) (EC:A4) [10:25:13:435]: 
MSI (s) (EC:A4) [10:25:13:435]: Note: 1: 1718 2: C:\Windows\Installer\4707016d.msi 
MSI (s) (EC:A4) [10:25:13:450]: MainEngineThread is returning 1625
MSI (s) (EC:90) [10:25:13:450]: No System Restore sequence number for this installation.
MSI (s) (EC:90) [10:25:13:450]: User policy value 'DisableRollback' is 0
MSI (s) (EC:90) [10:25:13:450]: Machine policy value 'DisableRollback' is 0
MSI (s) (EC:90) [10:25:13:450]: Incrementing counter to disable shutdown. Counter after increment: 0
MSI (s) (EC:90) [10:25:13:450]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2 
MSI (s) (EC:90) [10:25:13:466]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2 
MSI (s) (EC:90) [10:25:13:466]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied.  Counter after decrement: -1
MSI (c) (60:44) [10:25:13:466]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied.  Counter after decrement: -1
MSI (c) (60:44) [10:25:13:466]: MainEngineThread is returning 1625
=== Verbose logging stopped: 6/12/2025  10:25:13 ===

 

There are no domain policies blocking the installation. The gpresult /R command lists no policies which can block the installation of the agent.

Cause

The Azure Application Control policy is enforced on the Azure local cluster which blocks installation of third-party applications on the nodes.

Resolution

This Microsoft article explains the issue in detail: https://learn.microsoft.com/en-us/azure/azure-local/manage/manage-wdac?view=azloc-2505

Azure admin can change the policy to audit mode so that the agent can be installed.

 

Article Properties
Article Number: 000333860
Article Type: Solution
Last Modified: 18 Jun 2025
Version:  1
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