Error: On-host proxy requires upgrade before it can be used

[_tcpip_]

Hello everyone,

Azure Local Cluster 4 Nodes: Some backup jobs are no longer working.
Backups are performed via the SCVMM object.
A new backup job via the cluster object worked.

The following messages appear during backups:

First this one:

Error: Failed to collect VM information. [WMI] Empty result.

Then this one appeared:

Unable to allocate processing resources. Error: On-host proxy requires upgrade before it can be used.

The only change to the environment was Windows Updates January 13, 2026 on the backup server B&R 12.3.2 (Server 2022) and SCVMM (Server 2025).

Otherwise, the cluster and VMs are running stably. VMs and CSV files are OK. Azue Local is up to date. It is updated regularly every month.
I would try uninstalling the last monthly Windows update. But I'm not a fan of that.

Maybe someone has an idea why it stopped working?

Veeam Support - Case # 07952826

Best regards

Daniel

[david.domask]

Hi Daniel,

No known issues related to the update, so please continue with Veeam Support on the troubleshooting.

I would advise wait for Support's update before uninstalling the update to understand why these errors suddenly appeared -- the WMI error basically tells that when we made a WMI query no information was received, though for unclear reasons, and I see Support gave a few suggestions to start with but looks like those initial suggestions didn't work.

Please continue with Support, they should update the case soon. If you have concerns about the case handling, please use the Talk to a Manager button in the case portal to reach out to Support Management, they will review the case and allocate additional resources as necessary.

[_tcpip_]

Hi David,

Of course, I am waiting for a response from support. But as I feared, the error persists and none of the jobs are working anymore.

Backing up via the cluster object instead of via scvmm no longer works either and results in the error: proxy requires upgrade before it can be used.

[_tcpip_]

We found the reason. It was the missing windows update on the Azure Local Nodes. 2026-01 Cumulative Update for Microsoft server operating system version 24H2 for x64-based Systems (KB5073379) (26100.32230)
Since the update installation for these systems is a bit more complex, the nodes still had this update pending. All other systems had already installed the update.
Now that all systems have the same windows update status, the backups are running again.
Something must have affected the communication between the systems.

We have never had a situation where a missing Windows update affected the backup or communication between the components in this way.

Perhaps someone from Veeam can explain in more detail what the reason is.

Best regards

Daniel

[david.domask]

Hi Daniel,

Glad to hear you got it going and thanks for sharing the solution -- root cause analysis will require log analysis, so please ask within the case and Veeam Support will see what was happening in the logs.

My guess would be that perhaps something within the update required that all nodes be on the same patch level, but purely a guess.