Azure compute resources that are used to create and manage groups of heterogeneous load-balanced virtual machines.
After working together with the customer offline, we found that this VMSS uses Flexible Orchestration. As a result, it does not support the option to enable Automatic OS upgrades.
This limitation is specific to Flexible Orchestration type VMSS, which means that automatic updates for the operating system cannot be activated for this configuration.
[Note: The initial cause of the AutomaticOSUpgrade failure error was the absence of the RP feature VMSSFlexAutoOSUpgrade for the subscription]