Azure Migrate Error 1000037 :"The moc-operator network interface service returned an error while reconciling: The address is already in use: Already Set"

Question

Azure Migrate Error 1000037 :"The moc-operator network interface service returned an error while reconciling: The address is already in use: Already Set"

Richard Beyer 61

We are using Azure migrate from VMWare to Azure Local on a Dell AX760 cluster. This is a new Azure Local install (Version 2510) and only has a few VMs so far and these were successfully migrated. I am attempting to migrate one of our Domain Controllers (Windows 2012 R2) with a static address and having failures at the "Starting failover" step. I have applied the script for static IP migrations. The VM is on the default vlan.

I have removed the Azure Local Network Adapter and OS Drive created by the failed migration and cannot locate another adapter in the same system that would be conflicting. I noticed that the migration step "Turning off resource on primary" is showing "skipped" even though the migration is set to shutdown the original. I even tried manually shutting down the source VM before doing the migration.

The full error message is:

Error ID

1000037

Error message

An ARC service operation failed with error code: 'InUse', message: '{"id":"/providers/Microsoft.AzureStackHCI/locations/EASTUS/operationStatuses/<masked by moderator>","name":"<masked by moderator>","resourceId":"/subscriptions/<sub-id>/resourceGroups/<rg-name>/providers/Microsoft.AzureStackHCI/networkInterfaces/<nic-name>","status":"Failed","startTime":"2025-11-02T17:52:07.1965403Z","endTime":"2025-11-02T17:52:19.7632125Z","error":{"code":"InUse","message":"The moc-operator network interface service returned an error while reconciling: The address is already in use: Already Set","additionalInfo":[{"type":"ErrorInfo","info":{"category":"Uncategorized","recommendedAction":"","troubleshootingURL":""}}]}}', error message: 'The moc-operator network interface service returned an error while reconciling: The address is already in use: Already Set Status: 200 (OK) ErrorCode: InUse Service request succeeded. Response content and headers are not included to avoid logging sensitive data. '.

Possible causes

An ARC service operation failed.

Any suggestions?

Regards,

Richard Beyer

Richard Beyer 61 Reputation points

2025-11-03T13:28:21.4466667+00:00

Thank you, Ankit. I will try the solution for cause 2. That is the most likely issue since the VM I am moving is one of the DNS servers assigned to the system. Since I have 3 DNS servers assigned, I can safely remove it for the migration and then add it back once completed,
Ankit Yadav 14,165 Reputation points Microsoft External Staff Moderator

2025-11-04T05:19:52.5633333+00:00

Hey @Richard Beyer

Sounds good,

let us know how things go, looking forward to hearing back from you!
Richard Beyer 61 Reputation points

2025-11-04T14:07:39.93+00:00

Hi Ankit,

Unfortunately, removing that IP address from the Logical network's DNS servers did not solve the problem. The migration still fails at the same step wit the same error. I confirmed in connected devices that there was not another device with that IP address. Any other suggestions?

Thank you.
Richard Beyer 61 Reputation points

2025-11-04T21:23:45.9166667+00:00

Hi Ankit,

I have resolved the problem. The root cause was that the Dell Partner that installed and configured the Azure Local system applied an incorrect gateway IP address to the Default Logical Network. I created a new Logical network with the correct parameters and migrated to that without issue. Thank you for your assistance. You may close this question.
Ankit Yadav 14,165 Reputation points Microsoft External Staff Moderator

2025-11-05T02:55:41.4066667+00:00

Hello @Richard Beyer ,

Glad to know that the workaround to create a new logical network worked out well for the migration and issue has been resolved. Kindly take a moment to accept answers and upvote it 👍 to make it helpful to the community.Thank you for helping to improve Microsoft Q&A!

Answer accepted by question author

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Richard Beyer 61 Reputation points

2025-11-03T13:28:21.4466667+00:00

Thank you, Ankit. I will try the solution for cause 2. That is the most likely issue since the VM I am moving is one of the DNS servers assigned to the system. Since I have 3 DNS servers assigned, I can safely remove it for the migration and then add it back once completed,
Ankit Yadav 14,165 Reputation points Microsoft External Staff Moderator

2025-11-04T05:19:52.5633333+00:00

Hey @Richard Beyer

Sounds good,

let us know how things go, looking forward to hearing back from you!
Richard Beyer 61 Reputation points

2025-11-04T14:07:39.93+00:00

Hi Ankit,

Unfortunately, removing that IP address from the Logical network's DNS servers did not solve the problem. The migration still fails at the same step wit the same error. I confirmed in connected devices that there was not another device with that IP address. Any other suggestions?

Thank you.
Richard Beyer 61 Reputation points

2025-11-04T21:23:45.9166667+00:00

Hi Ankit,

I have resolved the problem. The root cause was that the Dell Partner that installed and configured the Azure Local system applied an incorrect gateway IP address to the Default Logical Network. I created a new Logical network with the correct parameters and migrated to that without issue. Thank you for your assistance. You may close this question.
Ankit Yadav 14,165 Reputation points Microsoft External Staff Moderator

2025-11-05T02:55:41.4066667+00:00

Hello @Richard Beyer ,

Glad to know that the workaround to create a new logical network worked out well for the migration and issue has been resolved. Kindly take a moment to accept answers and upvote it 👍 to make it helpful to the community.Thank you for helping to improve Microsoft Q&A!

Answer 1

Hello @Richard Beyer

Thank you for sharing detailed error details.

Error: "The moc-operator network interface service returned an error while reconciling: The address is already in use: Already Set"

This occurs when the static IP address you're trying to assign to your migrating VM is already being used by another resource in your Azure Local environment.

Possible Causes:

IP Address Conflict: Another VM on the same network is already using the IP address you're trying to assign
DNS Server Migration: You're migrating a DNS server that currently provides DNS services for the network itself.

Solution for cause 1: You'd be required to locate and delete the NIC with the conflicting IP address, kindly follow below steps for it:

Step 1: Navigate to the static Lnet (Azure Local logical Network) where the migration was attempted.

Step 2: Identify the IP address in use.

Step 3: Delete the NIC associated with the conflicting IP.

User's image

Additionally, if you need to assign a static NIC with the correct IP address to an existing VM after deleting the old NIC, this can also be done.

Solution for cause 2:

Create a second static logical network without the DNS servers specified for migrating the DNS server VMs, and migrate the DNS server to that

Or

migrate the DNS server to a DHCP Lnet instead.

Do let me know if you hit any blocker or if this works out for you, your feedback is highly appreciated.

Answer 2

Chris VanDenBerg 0

We are having same issue and I suspect it's the DNS. Do we have to create a separate vlan with a different IP space because it won't let you create a separate vlan with the same IP space. Trying to avoid changing the IP address on the DC VM being migrated.

Ankit Yadav 14,165 Reputation points Microsoft External Staff Moderator

2026-04-23T16:15:17.7466667+00:00

Hello Chris,

could you please submit a new query about the issue?

This will allow us to contact you and review the problem with you in detail through Private Message when required.

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Azure Migrate Error 1000037 :"The moc-operator network interface service returned an error while reconciling: The address is already in use: Already Set"

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