Microsoft.PolicyInsights/remediations failureThreshold percentage issue

A policy remediation is failing for all the deployments and failing the terraform deployment. Tried to set the failureThreshold.percentage to 1 to allow 100% failure but the resource is still failing the deployment. Expected that all the remediation deployments fail and the Microsoft.PolicyInsights/remediations successfully deploys.

╷
│ Error: Failed to create/update resource
│
│ with module.bootstrap.azapi_resource.policy_remediation_mdfc["migrateToMdeTvm"],
│ on ..\modules\bootstrap\main.tf line 64, in resource "azapi_resource" "policy_remediation_mdfc":
│ 64: resource "azapi_resource" "policy_remediation_mdfc" {
│
│ creating/updating Resource: (ResourceId
│ "/providers/Microsoft.Management/managementGroups/sd115/providers/Microsoft.PolicyInsights/remediations/deploy-mdfc-config-h224-remediation-migrateToMdeTvm"
│ / Api Version "2024-10-01"): GET
│ https://management.azure.com/providers/Microsoft.Management/managementGroups/sd115/providers/Microsoft.PolicyInsights/remediations/deploy-mdfc-config-h224-remediation-migrateToMdeTvm
│ --------------------------------------------------------------------------------
│ RESPONSE 200: 200 OK
│ ERROR CODE UNAVAILABLE
│ --------------------------------------------------------------------------------
│ {
│ "properties": {
│ "policyAssignmentId": "/providers/microsoft.management/managementgroups/sd115/providers/microsoft.authorization/policyassignments/deploy-mdfc-config-h224",
│ "policyDefinitionReferenceId": "migratetomdetvm",
│ "provisioningState": "Failed",
│ "createdOn": "2025-02-11T02:34:50.2177957Z",
│ "lastUpdatedOn": "2025-02-11T02:36:07.3168601Z",
│ "deploymentStatus": {
│ "totalDeployments": 2,
│ "successfulDeployments": 0,
│ "failedDeployments": 2
│ },
│ "resourceDiscoveryMode": "ExistingNonCompliant",
│ "statusMessage": "All remediation deployments failed.",
│ "correlationId": "eb2f5923-3560-1b72-501d-8ff5d5c664d4",
│ "failureThreshold": {
│ "percentage": 1.0
│ }
│ },
│ "id": "/providers/microsoft.management/managementgroups/sd115/providers/microsoft.policyinsights/remediations/deploy-mdfc-config-h224-remediation-migratetomdetvm",
│ "name": "deploy-mdfc-config-h224-remediation-migrateToMdeTvm",
│ "type": "Microsoft.PolicyInsights/remediations",
│ "systemData": {
│ "createdBy": "d18f16e2-a270-4598-952d-782cc1b5b0f1",
│ "createdByType": "Application",
│ "createdAt": "2025-02-11T02:34:49.9066388Z",
│ "lastModifiedBy": "d18f16e2-a270-4598-952d-782cc1b5b0f1",
│ "lastModifiedByType": "Application",
│ "lastModifiedAt": "2025-02-11T02:34:49.9066388Z"
│ }
│ }
│ --------------------------------------------------------------------------------
│

Start at modules/bootstrap/main.tf line 64, where the azapi_resource for Microsoft.PolicyInsights/remediations is declared, and inspect how failureThreshold.percentage is passed to the Azure API. Reproduce the two-failed-deployment case and compare the API response with the provider's failure handling; done means a 1% threshold permits the remediation resource to deploy when all remediation deployments fail.

Written by the indexing model from the issue text.