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If, after the error, you do a second

pulumi up

does it complete? If so, I suspect Azure is taking a while to propagate the domain and the request is essentially timing out waiting for the domain to be seen. Regardless, it’s probably worth trying the

customTimeouts

resource option. See: https://www.pulumi.com/docs/intro/concepts/resources/#customtimeouts

Thanks, i wil try it.