How to Move the DEV AOSService Folder to a Different Disk in D365 FSCM VDH?

For local development in Dynamics 365 Finance and Supply Chain Management (FSCM), developers typically download and install the Virtual Hard Drive (VHD) from the Lifecycle Services (LCS) - Shared Asset Library.

By default, the DEV VHD is configured to run entirely on the C: drive, which has a limited capacity of approximately 126 GB. This drive fills up quickly, especially when working with source code and packages. To avoid space constraints, you can add a new disk to your VM and relocate the AOSService folder.

This guide walks you through the process step by step.

Step 1: Add a New Hard Drive

• Open Hyper-V Manager on your host machine.

• Attach a new virtual hard drive to your development VM. We may need to turn it off first.

            

Open Computer management to format the new disk.

Step 2: Stop D365 FSCM Services

Before moving files, stop all related services to prevent conflicts:

• World Wide Web Publishing Service

• Management Reporter 2012 Process Service

• Microsoft Dynamics 365 Unified Operations: Batch Management Service
• Microsoft Dynamics 365 Unified Operations: Data Import Export Framework Service

Step 3: Move the AOSService Folder

• Copy the folder C:\AOSService to the new disk (e.g., D:\AOSService).

 

Step 4: Update the Registry

• Open RegEdit.

• Navigate to:
• HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Dynamics\AX\Development → Update DefaultConfig to point to D:\AOSService.

• HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\DynamicsAxBatch → Update ImagePath to point to D:\AOSService.

Step 5: Update Configuration Files

Perform a find-and-replace in the following files:

• D:\AOSService\PackagesLocalDirectory\Bin\DynamicsDevConfig.xml → Replace all C:\AOSService references with D:\AOSService.

• D:\AOSService\webroot\Web.config → Replace all C:\AOSService references with D:\AOSService.

Step 6: Update IIS Settings

• Open IIS Manager.

• Navigate to Sites → AOSService → Advanced Settings → Change Physical Path to D:\AOSService\webroot.

• Under Sites → Applications, update the Product Configurator physical path from C:\AOSService to D:\AOSService.

Step 7: Update Shortcuts

• Modify the AdminUserProvisioningTool shortcut so it points to the new location on D:\AOSService.

        

 Step 8: Restart the VM

• Restart the entire VM to ensure all changes take effect.

✅ Outcome: After completing these steps, your development environment will run with the AOSService folder on the new disk, freeing up space on the C: drive and improving stability for ongoing development work.

Disclaimer – The content published on this blog is provided solely for informational purposes. Dynamics 365 EZ makes no guarantees regarding the accuracy, completeness, timeliness, suitability, or validity of any information presented. We accept no responsibility for any errors, omissions, or delays, nor for any losses, injuries, or damages that may result from the use or display of this information.

References:

https://community.dynamics.com/blogs/post/?postid=e0b76ee8-312a-44ca-b750-4520a7928824

Step by Step Guide to Deploy a Local VHD of D365FO - Alex Meyer

Set up the downloadable VHD for first use - Finance & Operations | Dynamics 365 | Microsoft Learn