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This IP 169.254.169.254 is the Azure Instance Metadata Service (IMDS) endpoint. IMDS is a REST API that's available at a well-known, non-routable IP address (169.254.169.254). When a VM or VMSS instance tries to query metadata (licensing, config injection, identity tokens, instance info, bootstrap information, etc.), it contacts 169.254.169.254.
If that connection times out, it means the VM cannot reach IMDS, which normally should always be reachable from inside the VM instance.
In FortiOS, the status of the service can be verified by running the following command:
diagnose debug cloudinit show
Additionally, the following debug commands can be used to check the service status or for any errors:
diagnose debug reset
diagnose debug application azd -1
diagnose debug console timestamp enable
diagnose debug enable
For example, if the metadata connection fails, the following error will be visible in the debug logs:
2025-10-23 11:06:21 azd connection timeout: 169.254.169.254:80:169.254.169.254
2025-10-23 11:06:21 azd curl retry
2025-10-23 11:06:36 azd connection timeout: 169.254.169.254:80:169.254.169.254
2025-10-23 11:06:36 azd curl retry
2025-10-23 11:06:51 azd connection timeout: 169.254.169.254:80:169.254.169.254
2025-10-23 11:06:51 azd curl retry
2025-10-23 11:07:06 azd connection timeout: 169.254.169.254:80:169.254.169.254
2025-10-23 11:07:06 azd show instance metadata error.
In the above example, logs FortiGate VM on Azure did not receive any response to its query to the Azure metadata service hosted on link-local address 169.254.169.254, resulting in a connection timeout.
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