How to fix Azure Local / Arc control-plane NIC reconciliation issue

Question

How to fix Azure Local / Arc control-plane NIC reconciliation issue

Abolaji Admin 0

During Azure Migrate from a VMware to Azure HCI local, the error below occur, this is a domain controller. Any insight will be appreciated

An ARC service operation failed with error code: 'InUse', message: '{"REDACTED Customer resource details"

,"status":"Failed","startTime":"2026-04-27T23:03:55.0635451Z","endTime":"2026-04-27T23:04:00.211076Z","error":{"code":"InUse","message":"The moc-operator network interface service returned an error while reconciling: The address is already in use: Already Set: Failed","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: Failed Status: 200 (OK) ErrorCode: InUse Service request succeeded. Response content and headers are not included to avoid logging sensitive data. '.

Siva shunmugam Nadessin 9,625 Reputation points Microsoft External Staff Moderator

2026-05-04T04:10:31.8733333+00:00

Hello Abolaji Admin,

We are currently investigating on this and will keep you posted
Ankit Yadav 14,165 Reputation points Microsoft External Staff Moderator

2026-05-04T05:49:26.85+00:00
Hello @Abolaji Admin, 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.

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.

Let us know if this works out for you or not.

Credits: https://learn.microsoft.com/en-us/answers/questions/5606422/azure-migrate-error-1000037-the-moc-operator-netwo
Abolaji Ogunmola 0 Reputation points

2026-05-04T20:18:14.2866667+00:00

Thank you Ankit. I will give it a try and let you know. Option 2 looks more preferable
Ankit Yadav 14,165 Reputation points Microsoft External Staff Moderator

2026-05-05T09:16:47.8666667+00:00

Hey @Abolaji Admin,

Just wanted to check if you’ve had a chance to try the solution and whether it worked for you. Please let us know where you’re encountering issues and what errors or failures you’re seeing.
Josiah Renz De Lara 0 Reputation points

2026-05-05T13:23:55.4633333+00:00

Hi Ankit, I am fairly new in the Azure Local and also experiencing the same issue as Abolaji reported in the attempt to migrate one of my DC to Azure Local.

There is no VM Network Interface present with the same IP as my DC so Cause 1 is ruled out for me.

As for the recommended solution for Cause 2, I am unable to create another Logical Network with out DNS as the IP Pools have already been defined in another Logical Network which is currently used by migrated servers. Any insight will also be appreciated!
Abolaji Ogunmola 0 Reputation points

2026-05-06T06:10:53.5366667+00:00

I also want to add that our DC server is also the DNS server. I am hoping to try the migration again this week and update here. Thanks for the suggestions thus far.

1 answer

Your answer

Siva shunmugam Nadessin 9,625 Reputation points Microsoft External Staff Moderator

2026-05-04T04:10:31.8733333+00:00

Hello Abolaji Admin,

We are currently investigating on this and will keep you posted
Ankit Yadav 14,165 Reputation points Microsoft External Staff Moderator

2026-05-04T05:49:26.85+00:00

Hello @Abolaji Admin, 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.

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.

Let us know if this works out for you or not.

Credits: https://learn.microsoft.com/en-us/answers/questions/5606422/azure-migrate-error-1000037-the-moc-operator-netwo
Abolaji Ogunmola 0 Reputation points

2026-05-04T20:18:14.2866667+00:00

Thank you Ankit. I will give it a try and let you know. Option 2 looks more preferable
Ankit Yadav 14,165 Reputation points Microsoft External Staff Moderator

2026-05-05T09:16:47.8666667+00:00

Hey @Abolaji Admin,

Just wanted to check if you’ve had a chance to try the solution and whether it worked for you. Please let us know where you’re encountering issues and what errors or failures you’re seeing.
Josiah Renz De Lara 0 Reputation points

2026-05-05T13:23:55.4633333+00:00

Hi Ankit, I am fairly new in the Azure Local and also experiencing the same issue as Abolaji reported in the attempt to migrate one of my DC to Azure Local.

There is no VM Network Interface present with the same IP as my DC so Cause 1 is ruled out for me.

As for the recommended solution for Cause 2, I am unable to create another Logical Network with out DNS as the IP Pools have already been defined in another Logical Network which is currently used by migrated servers. Any insight will also be appreciated!
Abolaji Ogunmola 0 Reputation points

2026-05-06T06:10:53.5366667+00:00

I also want to add that our DC server is also the DNS server. I am hoping to try the migration again this week and update here. Thanks for the suggestions thus far.

Answer 1

Salamat Shah 180 MVP

Ensure the DC’s IP is not included in the Azure Local logical network / IP pool (remove it if present).
Retry the migration with a temporary or different IP.
After the VM is successfully created, manually reassign the original static IP inside the guest OS.
If the IP remains locked, restart MOC services on the cluster nodes (e.g., MocHostAgent, HciCloudManagementSvc) to clear stale reservations.

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How to fix Azure Local / Arc control-plane NIC reconciliation issue

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