SQL Managed Instance update to SQLServer2025 database format fails at Virtual Cluster resize step

Question

SQL Managed Instance update to SQLServer2025 database format fails at Virtual Cluster resize step

Chaitanya Eswara Panduga 0 Microsoft Employee

We are attempting to update our Azure SQL Managed Instance from SQLServer2022 to SQLServer2025 database format. The update has been attempted multiple

times via both the Azure Portal and the REST API (PATCH with api-version=2024-05-01-preview). Each attempt fails at Step 2 of 6 — "Virtual Cluster

resize/creation".

The instance returns to Ready state on SQLServer2022 after each failed attempt (rollback is automatic). The error is flagged as isUserError: false,

indicating a platform-side issue.

Error Details

Error Code: 40673
- Error Message: "The service objective assignment for the database has failed. Please contact Microsoft customer support and provide the server name,
database name and activity ID."
Error Severity: 16
- Failed Step: "Virtual Cluster resize/creation"
- isUserError: false
- Total Steps: 6 (only 1 of 6 completed before failure)

Activity / Operation IDs (multiple failed attempts)

┌─────────┬──────────────────────────────────────┬─────────────────────┐

│ Attempt │ Operation ID │ Start Time (UTC) │

├─────────┼──────────────────────────────────────┼─────────────────────┤

│ 1 │ 16473e9f-0289-48ba-8396-57ae0703 │ 2026-05-02 03:34:47 │

├─────────┼──────────────────────────────────────┼─────────────────────┤

│ 2 │ 04fe6781-852b-45da-ae6f-33936830 │ 2026-05-02 04:32:03 │

├─────────┼──────────────────────────────────────┼─────────────────────┤

│ 3 │ 52acedb4-be5c-44bd-9b21-50c3bece │ 2026-05-02 06:29:59 │

├─────────┼──────────────────────────────────────┼─────────────────────┤

│ 4 │ a5681b06-6a3b-4dc0-aaf3-1b223a3a│ 2026-05-03 18:48:10 │

└─────────┴──────────────────────────────────────┴─────────────────────┘

Latest x-ms-request-id: a5681b06-6a3b-4dc0-aaf3- Correlation ID: c619b488-d304-464c-9cc0-

Questions for Microsoft Support

Why is the Virtual Cluster resize/creation step failing for this instance?
Is the Gen8IH (GP_G8IH) hardware family in West US 2 supported for the SQLServer2025 engine?
Is there a regional capacity issue or virtual cluster constraint blocking this update?
Are there any pre-requisites or migrations needed on this instance before the format change can succeed?
What is the recommended path forward — is engineering action required on the platform side?

Business Impact

This is our Dev environment, but the upgrade is on the path for our PPE (sqlmi-revattr-ppe-wu2) and Prod instances (sqlmi-revattr-prod-wu2 /

sqlmi-revattr-proddr-eu2 — production with active failover group). We need to validate the upgrade in Dev before proceeding to higher environments, so

this blocker is delaying our planned production migration to SQL Server 2025.

Pilladi Padma Sai Manisha 7,715 Reputation points Microsoft External Staff Moderator

2026-05-04T00:38:52.1666667+00:00
Hi
Thankyou for reaching microsoft Q&A!

From the pattern you’re seeing (failure consistently at “Virtual Cluster resize/creation” and isUserError: false), this doesn’t point to anything misconfigured on your side. It’s happening during the infrastructure step where Azure tries to place or resize your instance into a compatible virtual cluster for SQL Server 2025.

That step depends on available capacity in the underlying cluster. Error 40673 in this phase typically means the platform couldn’t allocate the required resources for the new service objective.

Since you’re on GP_G8IH (Gen8IH) in West US 2, the most likely causes are:

The SQL Server 2025 rollout for that hardware family is still regionally limited, or

There’s temporary capacity pressure in the target cluster backing that hardware

There aren’t any additional prerequisites you’re missing, the automatic rollback and error classification confirm this isn’t a user-side issue.

What you can try next:

Retry the upgrade during a different time window (off-peak can sometimes make a difference)

Temporarily adjust compute (e.g., change vCore count or tier) and retry, this can trigger placement on a different cluster

If feasible, attempt the same upgrade in another region to validate whether this is specific to West US 2

Given that this is already failing at the infrastructure allocation step in Dev, it’s best to treat this as a capacity/rollout limitation and validate carefully before moving to PPE or Prod.

In short, the behavior you’re seeing is consistent with backend capacity or rollout constraints, not anything blocked or missing in your configuration.
Pilladi Padma Sai Manisha 7,715 Reputation points Microsoft External Staff Moderator

2026-05-05T10:54:01.4766667+00:00

Hi Chaitanya Eswara Panduga,
I hope you had a chance to review the information shared earlier, and I hope this information has been helpful! If you still have questions, please let us know what is needed in the comments so the question can be answered.