SXA Installation is Failing on Vanilla Sitecore 9.2

On a fresh vanilla Sitecore 9.2 installation on Azure PaaS while trying to install SXA 1.9 using Sitecore ARM Templates, it was erroring out and showing the below screen:

The installation was taking a while before erroring out so we thought there is some issue related to Azure Default Error Out Issue. It was also mentioned in the SXA Release notes:

Warning The Azure app service has a timeout set to 230 seconds per request. If you install SXA on an existing Azure Sitecore solution, consider scaling up to a higher service tier temporarily to prevent a request timeout occurring.

We scaled up the environment and tried re-installation but it errored out again.

Meanwhile we started looking into the Application Insights logs and we found the exception below:

ERROR An error has occured while creating the VirtualDrive. 
WARN Folder to clean up was not found: d:\local\temp\screenshots

We suspected that it must be due to incorrectly configured path to the “temp” folder in the “\App_Config\Sitecore\Azure\Sitecore.Settings.Azure.config” file or custom config file. When we compared this file with another Sitecore ARM Templates we were seeing the following setting.:

<sc.variable name="tempFolder" value="/temp" /> 

We changed the value mentioned above and also the path mentioned below:

After changing these values when we tried the installation again it was successful. Seems like during installation it was trying to access the full path as d:\temp and was timing out. It looks like it might be a typo in the ARM templates which we used.

If you face similar issues please check the values provided in the configs above.

Hope this helps!

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