Recently I've seen many people struggling with different issues after updating their local dev machine (VHD) with D365FO binary updates (for example 8.1.3 PU23 or 10.0 PU24). It might be that ISV binaries don't show up in AOT, or code changes don't take effect without building the whole package. Or data management export / import doesn't work.
The reason for these problems has been an incomplete installation of the update package. By default, if you don't change the setup files, installing the deployable package will only update AOSService component on the machine. All other D365FO components including DevTools, DIXFService and many more will stay on the old version. This version mismatch will cause numerous issues.
When you install Microsoft's D365FO update deployable packages manually from command line, you must update the DefaultTopologyData.xml in the package before generating the runbook and running the installation. This is clearly mentioned in the documentation but many people seem to have missed it: https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/deployment/install-deployable-package#collect-topology-configuration-data
It doesn't exactly help that the xml comment in DefaultTopologyData.xml says:
<!-- DefaultTopologyData are only for dev vhd, which we only support AOS update-->
You should ignore this statement and add all your D365FO components in the file.
If you accidentally updated only AOSService component, the situation can be fixed easily. Just update the DefaultTopologyData.xml file, generate a new runbook and run the update installer with this new runbook.
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