Extension fails to install on Windows VM

[ruslangalasun]

MDE extension deployment is returning the error below. I tried the deployment using Azure DevOps first and then did the manual ARM deployment through Azure Portal.

Status Message: VM has reported a failure when processing extension 'MDE.Windows'. Error message: "Failed to configure Microsoft Defender for Endpoint: Protected Setting defenderForEndpointOnboardingScript does not exist, please use mdeOnboardings API to retreive it (https://docs.microsoft.com/en-us/rest/api/securitycenter)"

[ruslangalasun]

To add some context, this is the code I'm using in my ARM template:

{
"type": "Microsoft.Compute/virtualMachines/extensions",
"apiVersion": "2021-03-01",
"location": "[parameters('location')]",
"name": "[concat(parameters('vmName'),'/MDE.Windows')]",
"properties": {
"autoUpgradeMinorVersion": true,
"publisher": "Microsoft.Azure.AzureDefenderForServers",
"type": "MDE.Windows",
"typeHandlerVersion": "1.0",
"settings": {
"azureResourceId": "[resourceId('Microsoft.Compute/virtualMachines',parameters('vmName'))]",
"defenderForServersWorkspaceId": "[parameters('WorkspaceId')]",
"forceReOnboarding": false
},
"protectedSettings": {}
}
}

[ruslangalasun]

Hopefully, someone can look into this issue soon. Here are some additional troubleshooting details that I did.
When I looked at one of the older VMs that we have I saw the following files for the Extension:

In this case, the extension was provisioned successfully and we didn’t see any issues.

Here is a screenshot from a new VM where the extension is failing:

You can see that WindowsDefenderATPOnboardingScript file is missing, which is exactly what the error message is complaining about: