Dynamics Community Forum Thread Details

Hi everyone,

We are currently unable to deploy a new D365 Finance & Operations cloud-hosted development environment from LCS.

We tried creating new environments from LCS > Cloud-hosted environments > Deploy in the East Asia region, but the deployments failed.

After checking the deployment details in Azure Portal, we found that the failed resource is the Storage Account, with the following error:

Account Kind Storage is not supported.
Code: AccountKindNotSupported

We then checked the ARM template generated by LCS and found that the Storage Account is defined as:

"kind": "Storage"

We have reproduced the same issue with more than one new LCS environment deployment, so it does not appear to be specific to one environment.

Our intended configuration is:

D365 F&O version: 10.0.49
Region: East Asia
Environment type: LCS Cloud-hosted development environment
Deployment: Most recent ARM topology
VM size tested: D4as v5 (we are also considering testing with an Ev5-series VM)

The deployment proceeds through several Azure resources successfully, such as VNET and Load Balancer, but fails when LCS attempts to create the Storage Account.

Given the recent changes around GPv1 Storage Account creation in Azure, we would like to confirm whether this could be related to the current LCS deployment behavior.

Is this a known issue with the current LCS Cloud-hosted environment deployment template?
Is there an updated LCS topology/template that uses "kind": "StorageV2" instead of "Storage"?
Is there a Microsoft-supported workaround for deploying a new Tier 1 cloud-hosted development environment?
Should existing LCS customers now use the new Power Platform admin center (PPAC) development environment instead of LCS for new development environments?
Is manually changing the generated ARM template from "Storage" to "StorageV2" supported, or could this cause issues with the subsequent LCS provisioning process?

We would highly appreciate any guidance from Microsoft or anyone who has encountered and resolved this issue recently.

Thank you.