New-AzureLocalNetworkGateway - InternalError

Since we have upgraded our Azure Powershell to version 1.* we are unable to run the command “New-AzureLocalNetworkGateway”. Each time we run the command we run into a different error.

Some examples are:

PS C:\> New-AzureLocalNetworkGateway -GatewayName [Gateway Name] -IpAddress [Gateway IP] -AddressSpace [Subnet]
New-AzureLocalNetworkGateway : A task was canceled.
At line:1 char:1
+ New-AzureLocalNetworkGateway -GatewayName [Gateway Name] -IpAddre ...
+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    + CategoryInfo          : CloseError: (:) [New-AzureLocalNetworkGateway], TaskCanceledException
    + FullyQualifiedErrorId : Microsoft.WindowsAzure.Commands.ServiceManagement.Network.Gateway.NewAzureLocalNetworkGateway

PS C:\> New-AzureLocalNetworkGateway -GatewayName [Gateway Name] -IpAddress [Gateway IP] -AddressSpace [Subnet]
New-AzureLocalNetworkGateway : InternalError: The server encountered an internal error. Please retry the request.
At line:1 char:1
+ New-AzureLocalNetworkGateway -GatewayName [Gateway Name] -IpAdd ...
+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    + CategoryInfo          : CloseError: (:) [New-AzureLocalNetworkGateway], CloudException
    + FullyQualifiedErrorId : Microsoft.WindowsAzure.Commands.ServiceManagement.Network.Gateway.NewAzureLocalNetworkGateway

The solution for now is to run the command from Azure Powershell 0.9.8. Here the same command runs without any problem.