SQL Server 2025 Log Shipping Fails with Missing Assembly (sqllogship.exe) on Split-Drive Install

Hello,

I am testing SQL Server 2025 in a lab environment and have encountered an issue with log shipping that appears to be related to assembly resolution.

Environment:

• SQL Server 2025 (fresh install, both unattended and manual tested)
• Windows Server 2022 and Windows Server 2025 (issue occurs on both)
• SQL binaries installed on E:\
• Default system drive is C:\

Issue:
When log shipping runs (via SQL Agent job or manually invoking sqllogship.exe), it fails with the following error:

Unhandled Exception: System.IO.FileNotFoundException: Could not load file or assembly 'Microsoft.SqlServer.ConnectionInfo, Version=17.100.0.0...

Observed Behavior:

• sqllogship.exe is located at:E:\Program Files\Microsoft SQL Server\170\Tools\Binn\
• The required assemblies (e.g., Microsoft.SqlServer.ConnectionInfo.dll) are installed at:C:\Program Files\Microsoft SQL Server\170\Shared\MDS5xSMO\
• The sqllogship.exe.config file in SQL Server 2025 includes explicit codeBase entries using relative paths:..\..\Shared\MDS5xSMO\Microsoft.SqlServer.ConnectionInfo.dll
• Because of this, the application attempts to resolve assemblies at:E:\Program Files\Microsoft SQL Server\170\Shared\MDS5xSMO\which does not exist by default.

Workaround:
Manually copying the shared SMO directory from C: to E: resolves the issue:

C:\Program Files\Microsoft SQL Server\170\Shared\MDS5xSMO → E:\Program Files\Microsoft SQL Server\170\Shared\MDS5xSMO

After doing this, log shipping works as expected.

Comparison with SQL Server 2022:

• SQL Server 2022 sqllogship.exe.config is empty
• It does not rely on explicit codeBase paths
• Log shipping works without requiring any manual file copies

Question:
Is this expected behavior in SQL Server 2025, or a potential issue with how sqllogship.exe resolves shared assemblies when SQL is installed on a non-system drive?

Specifically:

• Should Shared\MDS5xSMO also be installed on the same drive as the SQL binaries?
• Or should sqllogship.exe.config be updated to use absolute paths instead of relative ones?

Would appreciate any confirmation or guidance from others who may have encountered this.

Thanks!