D365 FnO Environment deployment fails after 60 minute timeout
This could be that the download speed between your VM and LCS is slow. You can test the speed, by simply trying to download the agent installer.
Also, increase the timeout to 240 from 60.
Also update the following values:
initialDownloadBlockSizeMB to 4
downloadBlockSizeMB to 5
networkTimeoutInMinutes to 240.
You can make all these changes in the localagent-config.json file.
LCS should be able to download the application package.
By the way I moving the question to the Finance forum. (From ​​​​​​​Dynamics 365 General)