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Durable Functions: orchestrations remain in Running state after activity failure (.NET 8 isolated worker) #7519

@ansonpinhero

Description

@ansonpinhero

Description

When using Azure Durable Functions (.NET 8 isolated worker) together with the Datadog .NET Tracer, orchestrations remain stuck in the Running state after an activity throws an exception.

Without Datadog, the orchestrator correctly transitions to Failed. With Datadog enabled, the orchestration history contains a TaskFailed event, but the orchestrator never replays and the orchestration status never updates.

Expected Behavior

Orchestrator should move from Running → Failed once the activity throws.

Actual Behavior with Datadog

Orchestrator remains stuck in Running.

History shows a TaskFailed event .

Environment

Azure Functions Runtime: .NET 8 Isolated Worker

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