When applying a Service update to aD365FO local development VM the update fails on the Sync AX database step with the following error.
The running command stopped because the preference variable "ErrorActionPreference" or common parameter is set to Stop: System.Management.Automation.RuntimeException: An exception of type System.Net.WebException occurred when making an http request to: http://127.0.0.1/ReportServer. Refer to the log file for more details.
The problem seems to be that the SSRS service is not started.
In order to fix this, start the service and re-run from the failing step.
Re-run from the failing step
AXUpdateInstaller.exe execute -runbookid=[runbookID] -rerunstep=[stepID]
AX / Dynamics 365 For Finance and Operations blog 