Microsoft Azure has provided the following update:
"We initiated the deployment of our ‘last known good’ configuration, which has now successfully completed. We are currently recovering nodes and re-routing traffic through healthy nodes.

As recovery progresses, some requests may still land on unhealthy nodes, resulting in intermittent failures or reduced availability until more nodes are fully restored. This recovery effort involves reloading configurations and rebalancing traffic across a large volume of nodes to restore full operational scale. The process is gradual by design, ensuring stability and preventing overload as dependent services recover. We expect continued improvement across affected regions. This means we expect recovery to happen by 23:20 UTC on 29 October 2025"

We are observing recovery in line with Microsoft Azure's update.

https://azure.status.microsoft/en-us/status