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when I try to activate the modern POS or could POS I am facing the below error
Sorry, the server has encountered an error. It is either not available or it can't respond at this time. Please try your request again or contact your system administrator.
I have made a smoke test and it looks fine.
A smoke test success only means connection is good.
In most scenarios, this error indicates the channel database doesn't have required environment informtion initialized, for example, the stores, registers, staffs, etc.
Make sure you have ran all distribution scheduler jobs successfully (status shows Applied). It's good idea to run a full sync to make sure all data has been synchronized.
Looking at the error it might take place while POS makes a call to GetEnvironmentConfiguration, that one might fail if, while activating a device, you specific the Url of the Retail Server which doesn't match to the property RetailServerUrl in the Channel Profile associated with your Store. To rectify it please make sure you are using the same RS Url as specified in the Channel Profile in HQ.
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