I tried to reproduce the same in my environment:
Code:
resource "azurerm_mssql_virtual_machine" "example" {
virtual_machine_id = azurerm_windows_virtual_machine.example.id
sql_license_type = "PAYG"
r_services_enabled = true
sql_connectivity_port = 1433
sql_connectivity_type = "PRIVATE"
sql_connectivity_update_password = "xxx"
sql_connectivity_update_username = "sqllogin"
auto_patching {
day_of_week = "Sunday"
maintenance_window_duration_in_minutes = 60
maintenance_window_starting_hour = 2
}
}
resource "azurerm_virtual_network" "example" {
name = "kavexample-network"
address_space = ["10.0.0.0/16"]
location = data.azurerm_resource_group.example.location
resource_group_name = data.azurerm_resource_group.example.name
}
resource "azurerm_subnet" "example" {
name = "internal"
resource_group_name = data.azurerm_resource_group.example.name
virtual_network_name = azurerm_virtual_network.example.name
address_prefixes = ["10.0.2.0/24"]
}
resource "azurerm_network_interface" "example" {
name = "kavya-example-nic"
location = data.azurerm_resource_group.example.location
resource_group_name = data.azurerm_resource_group.example.name
ip_configuration {
name = "internal"
subnet_id = azurerm_subnet.example.id
private_ip_address_allocation = "Dynamic"
}
}
resource "azurerm_windows_virtual_machine" "example" {
name = "kavyaexamplemc"
resource_group_name = data.azurerm_resource_group.example.name
location = data.azurerm_resource_group.example.location
size = "Standard_F2"
admin_username = "xxx"
admin_password = "xx"
enable_automatic_updates = true
patch_mode = "Manual"
hotpatching_enabled = true
network_interface_ids = [
azurerm_network_interface.example.id,
]
os_disk {
caching = "ReadWrite"
storage_account_type = "Standard_LRS"
}
source_image_reference {
publisher = "MicrosoftWindowsServer"
offer = "WindowsServer"
sku = "2016-Datacenter"
version = "latest"
}
}
Received same error:
│ Error: waiting for creation of Sql Virtual Machine (Sql Virtual Machine Name "kavyaexamplemc" / Resource Group "v-sakavya-Mindtree"): Code="CRPNotAllowedOperation" Message="Operation cannot be completed due to the following error: VM Extension with publisher 'Microsoft.SqlServer.Management' and type 'SqlIaaSAgent' does not support setting enableAutomaticUpgrade property to true on this subscription."

Even tried changing, but was still receving the same error again and again.
enable_automatic_updates = false
patch_mode = "Manual"
hotpatching_enabled = false
Try deleting the vm resource completely and create a new one with changed settings .
Try using below code:
I tried setting enable_automatic_upgrades = false
, azurerm_virtual_machine has this property .Make use of that.
Also ,
Code:
resource "azurerm_virtual_network" "main" {
name = "kavyasarvnetwork"
address_space = ["10.0.0.0/16"]
location = data.azurerm_resource_group.example.location
resource_group_name = data.azurerm_resource_group.example.name
}
resource "azurerm_subnet" "internal" {
name = "internal"
resource_group_name = data.azurerm_resource_group.example.name
virtual_network_name = azurerm_virtual_network.main.name
address_prefixes = ["10.0.2.0/24"]
}
resource "azurerm_network_interface" "main" {
name = "kavyasarnic"
location = data.azurerm_resource_group.example.location
resource_group_name = data.azurerm_resource_group.example.name
ip_configuration {
name = "testconfiguration1"
subnet_id = azurerm_subnet.internal.id
private_ip_address_allocation = "Dynamic"
}
}
resource "azurerm_virtual_machine" "example" {
name = "kavyasarvm"
location = data.azurerm_resource_group.example.location
resource_group_name = data.azurerm_resource_group.example.name
network_interface_ids = [azurerm_network_interface.main.id]
vm_size = "Standard_DS1_v2"
storage_os_disk {
name = "kavyasar-OSDisk"
caching = "ReadOnly"
create_option = "FromImage"
managed_disk_type = "Premium_LRS"
os_type = "Windows"
}
storage_image_reference {
publisher = "MicrosoftSQLServer"
offer = "SQL2017-WS2016"
sku = "SQLDEV"
version = "latest"
}
os_profile {
computer_name = "hostname"
admin_username = "testadmin"
admin_password = "Password1234!"
}
os_profile_windows_config {
timezone = "Pacific Standard Time"
provision_vm_agent = true
enable_automatic_upgrades = false
}
tags = {
environment = "staging"
}
}
resource "azurerm_mssql_virtual_machine" "example" {
virtual_machine_id = azurerm_virtual_machine.example.id
sql_license_type = "PAYG"
r_services_enabled = true
sql_connectivity_port = 1433
sql_connectivity_type = "PRIVATE"
sql_connectivity_update_password = "Password1234!"
sql_connectivity_update_username = "sqllogin"
}
This seems to be the cause due to limitations: What is the SQL Server IaaS Agent extension? (Windows) - SQL Server on Azure VMs | Microsoft Learn
The SQL IaaS Agent extension only supports:
SQL Server VMs deployed through the Azure Resource Manager
. SQL Server
VMs deployed through the classic model are not supported.
SQL Server VMs deployed to the public or Azure Government cloud.
Deployments to other private or government clouds are not supported.
Reference : azurerm_mssql_virtual_machine | Resources | hashicorp/azurerm | Terraform Registry