Fail target discovery deployment setting incorrectly failing when a target is discovered

[susanpann]

Severity

No response

Version

Reported on 2025.4.4016

Latest Version

I could reproduce the problem in the latest build

What happened?

When the fail target discovery deployment setting is enabled and a new target is discovered, the step will incorrectly fail during the Discovering Azure Web Application targets step and therefore fail the deployment

Reproduction

Error and Stacktrace

More Information

No response

Workaround

Turn off the fail target discovery setting in project settings or on the deploy a release page