Dynamics Community Forum Thread Details

Deployment fails at “Failed to start services” after rebuilding F&O model from metadata

Hi everyone,

I’m working on a Dynamics 365 Finance & Operations custom model (EFMS) that was rebuilt using model metadata only, and I’m looking for guidance on a deployment issue.

Scenario

I had only the model metadata available (from source control / LCS).
I created a new Finance and Operations development environment using the unified developer experience.
After connecting Visual Studio to the Dataverse environment, I:
- Created a new model
- Copied the recovered metadata into the model
The model builds successfully in Visual Studio

Issue

When I deploy the model to the online environment, deployment fails during service startup with the following error:

Application Module - WaitingForResources; Starting services on the environment.

Upload Finance and Operations Module XXXX - Applying Application Module - Failed;
Error Message:
Microsoft.Dynamics.CAP.Iris.Connectors.Exceptions.DSSidecarOperationException:
DS/Sidecar operation: axhost-remoteprocess failed with the error code FailedDependency;
error message: Failed to start services.

The failure occurs after the package is uploaded, while the environment is starting services (AxHost).

I would like to understand what typically causes this kind of AxHost / DS‑Sidecar service startup failure when a model is rebuilt purely from metadata.

I’m also looking for guidance on whether there is a recommended or commonly used approach to identify or isolate metadata that is unsafe at runtime in this scenario, especially when build‑time validation does not report any errors.

Finally, I’d appreciate pointers on where to find more detailed diagnostics for this type of failure. For example, are there specific Power Platform Admin Center views, PAC CLI commands, or other logs that provide better insight into why services fail to start during deployment?

Thanks in advance!