We have been informed that this is a known issue affecting all Windows 2012 R2 servers and may also impact other Server editions earlier than Server 2025. This issue is due to the way it is processed by the Azure Arc connected machine agent version 1.47 for Windows Server operating systems prior to Windows Server 2025.
However, I have also been informed that a fix for this issue is pending in the 1.48 release of the Azure Connected Machine Agent, which is expected in January 2025 after the change freeze.