Hello Angelina Souy,
Thank you for the update. I’m glad to hear that creating a new Batch account in another region resolved the issue and that nodes are now provisioning correctly there.
This confirmation further supports the earlier analysis that the root cause is not related to your configuration or quota limits but rather points to a platform-level fault that is scoped to the original Batch account or its deployment fabric in the West Europe region.
As mentioned earlier, your per-series quotas for F2s and F4s were correctly configured, and no recent changes were made to your pool setup, start task, image reference, or networking configuration. The autoStorage.lastKeySync logs were inconsequential, and no Azure Health advisories indicated issues in West Europe. Given this, it’s highly likely that a backend issue such as an image provisioning regression, node agent mismatch, or a fabric-specific allocation fault is causing new nodes to enter the "Unusable" state in your original Batch account.
Your test with a fresh account in a new region provides a valuable reference point to help isolate the issue further.
In the meantime, if your production workflows allow, using the newly created Batch account as a temporary workaround is a good path forward. As discussed in private message, I’ll keep you posted.
Update-
The issue was caused by Azure Batch's change of moving from classic node communication mode to simplified node communication mode being implemented with the classic communication mode being retired on March 31, 2026. Following this change and upon investigation, the Microsoft support team found that my node management access appears to be set to "deny." This configuration was contributing to the nodes entering an unusable state.
The customer had to remove the Access Rule restriction, and the nodes were working again, but this configuration was working in the Classic Communication mode.
The issue is now solved.