Hello ONTADM, I am Henry and I want to share my insight about your issue.
This situation indicates that the issue is not a general network block (like a firewall or NSG rule) but is related to the specific security context in which the AVD agent service runs, or the agent software itself is in a corrupted state. The AVD agent runs as the NT AUTHORITY\SYSTEM account. When you RDP into the VM and run the tool, you are running it as your logged-in user account.
Here are some steps you can refer:
Step 1: Reinstall the AVD Agent Stack
- Log in as an administrator to one of the failing VMs.
- Go to Apps & features and uninstall these two applications in order:
- Remote Desktop Agent Boot Loader
- Remote Desktop Services SxS Network Stack
- Go to C:\Program Files\Microsoft RDInfra and ensure the agent directories are removed.
- Reboot the virtual machine.
- Download the latest AVD agent and bootloader from the official Microsoft links.
- Install the AVD agent (Microsoft.RDInfra.RDAgent.Installer...) first.
- Install the AVD agent bootloader (Microsoft.RDInfra.RDAgentBootLoader.Installer...) second.
- After a few minutes, check the Azure portal. The status should update to "Available."
Step 2: If reinstalling the agent doesn't work, we must confirm the SYSTEM account is being blocked.
- Download PsExec from the official Microsoft Sysinternals suite.
- Open an administrative Command Prompt on a failing VM and run the following command to open a new command prompt running as the SYSTEM account:
psexec -s -i cmd.exe - In the new command prompt window (which is running as SYSTEM), try to access one of the critical AVD URLs using PowerShell:
Invoke-WebRequest -Uri 'https://rdbroker.wvd.microsoft.com' -UseBasicParsing
If this command fails or times out, it confirms that a proxy, local firewall, or security policy is blocking network access for the local SYSTEM account. You will need to work with your network team to adjust the policy to allow this traffic.
Online Documentation
I hope this information and these keywords help point you in the right direction for your research. Let me know how it goes, and if this answer helps, feel free to hit “Accept Answer” so others can benefit too