@Matthew Lam Thanks for your patience and your time over offline discussion on this.
I am summarizing the issue and posting the same as answer for the benefit of other community members.
Issue : Customer is unable to terminate their Standard V2 APIM instance it is failing with error message
(TerminationFailed) Unable to terminate Sku V2 API service at this time. Please open a support case for your API management service using the Azure portal and provide TimeStamp 2/20/2025 3:37:46 AM. Code: TerminationFailed Message: Unable to terminate Sku V2 API service at this time. Please open a support case for your API management service using the Azure portal and provide TimeStamp 2/20/2025 3:37:46 AM.
Resolution or Work Around:
Our Engineering team has investigated deeper and fixed the customer issue and Customer has confirmed that they are able to terminate the APIM v2 instance.
Please accept as Yes if the answer is helpful so that it can help others in the community.
Hope this helps let me know if you have any further questions on this.