Dear Mohan Randeniya,
This issue may be related to agent registration failures, network configuration, or missing permissions. We recommend reviewing the session host logs in Event Viewer under WVD-Agent, RDAgentBootLoader, or MsiInstaller for any errors such as INVALID_REGISTRATION_TOKEN or service startup failures. Additionally, please verify that the session hosts are correctly joined to Azure AD or your domain, and that required ports (TCP 443, UDP 3391) are open.
If you're using custom images or templates, ensure the Azure Virtual Desktop agent and boot loader are properly installed and running. We also suggest checking Azure Service Health and confirming that your subscription has sufficient resources and quotas.
If the above response helps answer your question, remember to "Accept Answer" so that others in the community facing similar issues can easily find the solution. Your contribution is highly appreciated.
Best regards,
Harry Phan