Keeping your Dynamics 365 Finance and Operations (D365FO) development environment up to date ensures that your system remains compatible with the latest features, fixes, and security improvements.
In this guide, we’ll walk through how to apply a Service Update (CU) to a local development virtual machine (VM) step by step.
📥 Step 1 – Download the Service Update Package
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Log in to LCS (Lifecycle Services).
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Go to Shared Asset Library → Software Deployable Package.
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Find and select the Service Update you want to apply.
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Click Download — the file is usually 5–6 GB, so this might take some time.
Once downloaded:
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Right-click the ZIP file → Properties → Unblock, then click OK.
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Extract it to a non-user folder (e.g.,
C:\Altitudo\10_0_23).⚠️ Avoid extracting to your Desktop or Downloads folder.
🧩 Step 2 – Collect Topology Configuration Data
Inside the extracted folder, locate DefaultTopologyData.xml.
This file defines the VM name and installed components for the update.
2.1 Identify Your VM Name
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Right-click This PC → Properties.
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Note your Computer name (e.g.,
AOS-950ed2c3e7b). -
Open DefaultTopologyData.xml and replace the
<Name>tag value with your actual VM name.
2.2 Identify Installed Components
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Open Command Prompt as Administrator.
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Navigate to the extracted folder.
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Run:
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Copy the list of installed components into a text file (for reference).
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Add those components inside the
<string>tags in DefaultTopologyData.xml. -
Save the file.
✅ After editing, your XML should include:
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The correct VM name
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The full list of installed components
⚙️ Step 3 – Generate a Runbook
A runbook defines the step-by-step installation plan for your VM.
Run the following command in the same folder:
Parameter Explanation
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runbookID – Identifier for this update (e.g.,
10_0_23_runbook) -
topologyFile – Path to your
DefaultTopologyData.xml -
serviceModelFile – Path to
DefaultServiceModelData.xml -
runbookFile – The name of the output runbook XML
Once complete, you should see a new file such as 10_0_23_runbook.xml.
🚀 Step 4 – Install the Deployable Package
4.1 Import the Runbook
4.2 Verify the Runbook
4.3 Execute the Runbook
⏳ The installation process can take several hours, depending on your VM and hardware resources.
💾 Step 5 – Export and Verify the Runbook
Once the process completes successfully:
Then verify the installation:
Compare listcomponentsupdated.txt with your earlier list to confirm that components have been updated.
Finally, open D365FO in your browser → Settings → About
✅ The new version number should now be visible.
🧰 Troubleshooting Common Errors
🧩 Error: DB Sync Fails (Usually Step 24)
Error Message:
Cause:
The SSRS (SQL Server Reporting Services) service is stopped.
Fix:
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Start the SQL Server Reporting Services service from Services.msc.
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Rerun the failing step:
Note: The update script sometimes stops SSRS but doesn’t restart it — you may need to manually start it mid-update.
🛍️ Error: Retail Self-Service Update Fails (Usually Step 52)
Error Message:
Cause:
The Azure Storage Emulator is not running.
Fix:
Start it manually:
Then rerun the failing step.
⚠️ Note: In-place updates or deployments of customizations on a locally deployed VHD are not supported. For development or testing, use an LCS-deployed developer topology.
✅ Summary
You’ve now successfully applied the latest Service Update to your D365FO development VM.
To recap:
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Download and extract the deployable package
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Configure topology and components
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Generate, import, and execute a runbook
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Verify and troubleshoot any errors
Keeping your development environment current ensures smoother deployments and compatibility with Microsoft’s cloud releases.
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