Thank you for the answer.

• The model is located in Unity Catalog like so:
  
• The model isn't deployed yet so can't check health metrics.
• I don't use Azure DevOps
• I've implemented 5 retries (first run creates the endpoint, next ones try to update it), but all generate the same error. Each time it seems to fail after similar period of time:
  
• If I understand correctly, the model serving does not take place on my cluster where I can set environment variables - correct me if I'm wrong please. I can run endpoint creation with cluster off using UI and none of my clusters are running at this time:
  
  So where can I set the variable?
  I've set the variable in a code before executing create_and_wait() method but not sure if it's correct.
• Any other ideas?
• What about the conda exceptions during deployement - how could I debug it.

As a test I also served simple linear regression model. The endpoint has been created successfully and works fine.