An Azure service that provides serverless Kubernetes, an integrated continuous integration and continuous delivery experience, and enterprise-grade security and governance.
I think Succeeded on the managed extension and a terminal AKS operation still don't identify the conflicting operation.
Before another start, run az aks operation list -g <rg> -n <aks> and inspect the failed update with az aks operation show -g <rg> -n <aks> --operation-id <id>. Compare UTC timestamps, errors and correlation IDs with Activity Log.
If those records don't expose the blocker, leave the cluster stopped and monitoring unchanged rather than repeating reconciliation or resetting the add-on. Basic support doesn't cover technical cases, so deeper investigation would require an eligible support plan.