The June 2026 update (2606) for Azure Local is a maintenance release. If you were hoping for headline features this month, there aren’t any: build 12.2606.1003.205 is about reliability, bug fixes, and keeping the platform current. Here’s what actually matters when you plan your next update window.
New features
Nothing is specific to 2606. The recent feature waves landed in 2604 (SAN storage GA, disaggregated SAN-only deployments that scale past 16 nodes, GPU acceleration for VMs GA, local identity with Azure Key Vault GA) and 2605 (external SAN over iSCSI in preview, GPU-P metrics). If you skipped those, they are worth a read before you jump on 2606.
Improvements
This build rolls up reliability improvements and bug fixes. The OS moves to 26100.32995 (download the image from the Azure portal), and the .NET runtimes are refreshed to 8.0.28 and 10.0.9. You will need a driver compatible with OS 26100.32995 or Windows Server 2025. On Integrated System or Premier hardware the OS is preinstalled, so coordinate with your OEM for the matching image and driver.
Fixed issues
None are called out as specific to 2606.
Known issues (read before you touch production)
There are no new known issues introduced in 2606, but the carried-over list still applies. The ones worth your attention:
- Volume deletion in Windows Admin Center can cause data loss.Impact: instances running the Cluster Manager extension below 5.2.6 can hit problems deleting volumes, with potential data loss. Workaround: update the Cluster Manager extension to 5.2.6 (or run WAC 2511 build 2.6.6.18 or higher), and do not delete volumes in WAC until you have.
- RegBack registry restore is not supported.Impact: restoring the registry via RegBack can strip the LCM and MOC settings and corrupt the solution. Workaround: don’t use RegBack on Azure Local; recover through supported paths.
- Arc registration fails (AZCMAgent exit code 42).Impact: blocks deployment when registering machines with Azure Arc. Workaround: follow the troubleshooting guide referenced in the release notes (aka.ms/arc/azcmerror).
- Defender Restrict App Execution breaks Day-2 ops.Impact: Update and Repair can fail when Defender for Endpoint has Restrict App Execution enabled. Workaround: disable Restrict App Execution in the Defender portal and reboot; open a support case if it persists.
- ASR rule blocks Solution Update.Impact: if the attack surface reduction rule “Block process creations originating from PSExec and WMI commands” is set to Block, Solution Update fails. Workaround: adjust the rule per the troubleshooting guide before updating.
- Add node / repair node on recalled images.Impact: add and repair operations fail on 11.2510.1002.87 or 12.2510.1002.88 (recalled builds). Workaround: move to 11.2510.1002.93 / 12.2510.1002.94; if you must run the operation mid-update, open a support case to override image validation.
- Update status misreported in the portal.Impact: the portal can show Failed or In progress when the update actually completed, which risks a duplicate action. Workaround: confirm via PowerShell (get-solutionupdate, then check $Update.state); if Installed, wait up to 24 hours, or restart the Cloud Management cluster group to refresh sooner.
- Mochostagent service silently stuck.Impact: the service looks healthy but stops updating logs, affecting VM management. Workaround: check C:\ProgramData\mochostagent\logs for fresh entries, then run restart-service mochostagent.
- VM stop fails with CLI 1.14.x on pre-2604 clusters.Impact: az stack-hci-vm stop fails. Workaround: use the latest CLI with the –skip-shutdown parameter, or downgrade to CLI 1.13.0 or earlier.
Upgrade planning notes
2606 is a low-drama update, but plan the basics: stage the 26100.32995 OS image from the portal, confirm driver compatibility (or get the OEM image for Integrated System and Premier hardware), and make sure any AKS Arc clusters are already on a supported Kubernetes version before you update. If you run Windows Admin Center, patch the Cluster Manager extension first given the volume-deletion data-loss risk. Otherwise this is a clean, incremental hop.
https://learn.microsoft.com/en-us/azure/azure-local/whats-new?view=azloc-2606



