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!

Categories:

Dynamics 365 Finance

Hi CU01040701-0,

1) Issue
- Deployment fails in D365 Finance and Operations after uploading a rebuilt model package
- Error occurs during the “Starting services” phase (AxHost startup)
- Message indicates DS/Sidecar operation failure with "Failed to start services"
- The model builds successfully in Visual Studio but fails at runtime during environment initialization
- The issue occurs when the model was reconstructed purely from metadata without the original full development context

2) Reason
- The error is caused by inconsistencies or missing dependencies in the reconstructed metadata model that are not detected during compilation
- A required runtime dependency such as referenced models, security artifacts, data entities, or service registrations is not properly aligned or initialized
- This leads to a failure when the AxHost service attempts to load and start application services based on the deployed package
- The build process validates syntax and metadata structure but does not validate all runtime behaviors or service wiring
- This can happen due to incomplete model reconstruction, missing referenced packages, incorrect model manifest, or hidden dependencies such as event handlers, extensions, or service classes

3) Resolution
- Verify that all dependent models and packages referenced by the custom model are included and correctly defined
- Compare the rebuilt model with the original environment to identify missing artifacts such as security roles, menu items, or service classes
- Ensure that the model manifest and descriptor files are complete and correctly reference all dependencies
- Validate that no orphaned metadata exists (for example references to deleted fields, tables, or classes)
- Deploy the model incrementally by removing components to isolate problematic metadata
- Use application event logs and environment logs (Power Platform Admin Center) to identify the exact service failing during startup
- Review deployment logs via Lifecycle Services or PAC CLI for detailed failure information
- Test deployment in a clean sandbox environment with minimal extensions to confirm reproducibility
- Rebuild and repackage the model ensuring full compile and synchronization before deployment
- If the issue cannot be isolated, create a Microsoft support ticket and provide full deployment logs and model metadata for deeper analysis
*Make sure, when removing relevant objects, that missing necessary objects can cause inconsistencies

For a more detailed answer, please provide more information.

Rg,

Alexander

*Due to the complex and different possibilities of deploying Dynamics 365 I highly recommend not to setup the application without some expert/partner or support. (For more information contact me under anassl@inno-solutions.info or visit www.inno-solutions.de)

*The Information comes directly from the manufacturer or provider and are validated (not guaranteed) up to date of creation of the posting.

References: