Hi 365RDROWN,
Hope you are doing well! Thank you for your patience while we are reviewing your query.
I understand your concern and as you have mentioned all the systems are in the same Region "East Us" that supports Azure stack HCI clusters. This issue has been reported previously in other regions which did not support Azure Stack HCI.
Once you've successfully registered your new Azure Local with Azure, Azure-managed extensions are automatically installed on your system. These extensions are essential for the functionality and quality of your system and can't be uninstalled. You can manage the behavior of these extensions in the Azure portal by navigating to the Extensions page and selecting the Settings menu.https://learn.microsoft.com/en-us/azure/azure-local/manage/arc-extension-management?tabs=azureportal
If you have an existing Azure Local that is registered to Azure without these extensions, a banner shows on the Overview or Extensions page in the Azure portal. You can use the information in the banner to guide you through installing these extensions.
Here are the Azure-managed extensions:
https://learn.microsoft.com/en-us/azure/azure-local/manage/arc-extension-management?tabs=azureportal
Recommendation: For an extension with a failed status, select the Failed (View details) link. View all the information about the failure and apply the troubleshooting tips.
Please go through the general troubleshooting steps mentioned in the article: https://learn.microsoft.com/en-us/azure/azure-arc/servers/troubleshoot-vm-extensions?source=recommendations#general-troubleshooting
This below article describes how to register your Azure Local machines and then set up the required permissions to deploy Azure Local, version 23H2. Also, please review deployment prerequisites for Azure Local, version 23H2.
Review deployment prerequisites for Azure Stack HCI, version 23H2 Install the Azure Stack HCI, version 23H2 operating system Register your servers and assign permissions for Azure Stack HCI, version 23H2 deployment