Azure VM OS License

Hello Handian Sudianto,

Greetings! Thanks for raising this question in the Q&A forum.

Azure Hybrid Benefit (AHB) for Windows Server is supported for Windows Server 2025. Microsoft documents that all Windows Server OS-based images are supported. The "AHB deactivated" message right after creation is therefore not caused by the 2025 version itself. I can't see your screenshots in the page text, so the cause is most likely one of these:

1. The licensing flag was not applied to the VM resource, so the portal reads the license type as empty.
2. The image selected is not a Windows Server image, for example a Windows client image or a Linux image.
3. The portal is showing a stale value right after deployment.

Please work through the steps below.

1. Check the current license type on the VM. In the Azure portal, open the VM and go to Operating system, then look at the Azure Hybrid Benefit setting. You can also run this in Cloud Shell:

az vm show --resource-group <rg-name> --name <vm-name> --query licenseType -o tsv

If it returns Windows_Server, AHB is active. If it returns nothing, the benefit is not applied.

Confirm the image is a Windows Server image. AHB for Windows Server only applies to Windows Server images. Windows 10/11 client images use a different licensing model called multitenant hosting, and Linux images don't use this option.

Re-apply the benefit to the existing VM. In the portal, go to the VM, then Configuration, and set the Azure Hybrid Benefit toggle to enabled. Or use the CLI:

az vm update --resource-group <rg-name> --name <vm-name> --license-type Windows_Server

PowerShell equivalent:

$vm = Get-AzVM -ResourceGroupName <rg-name> -Name <vm-name>
$vm.LicenseType = "Windows_Server"
Update-AzVM -ResourceGroupName <rg-name> -VM $vm

Refresh and re-check. Wait a few minutes, refresh the portal, and run the az vm show command from step 1 again. Billing can take several hours to reflect the change, so check the cost analysis later and not immediately.

For new deployments, set the license type explicitly. In the portal, tick the licensing checkbox on the Basics tab. In the CLI or templates, use:

az vm create --resource-group <rg-name> --name <vm-name> --image <windows-server-2025-image> --license-type Windows_Server

For ARM or Bicep, set licenseType to Windows_Server in the VM properties.

Verify your entitlement. AHB requires Windows Server core licenses with active Software Assurance or a qualifying subscription license. If the subscription or tenant does not meet the eligibility requirements, the benefit may not apply.

Escalate if it still shows as deactivated. If licenseType keeps returning empty after you set it explicitly, and the image is a Windows Server 2025 image, this points to a platform-side or portal issue. Please open an Azure Support request and include the subscription ID, the VM resource ID, the exact image (publisher, offer, SKU) and your screenshots, so the team can investigate.

If this answer helps you kindly accept the answer which will help others who have similar questions.

Best Regards,
Jerald Felix