The earliest recollection of this bug is traced back to PAN-OS 10.2.10 - March 11, 2025.
This bug is fixed in PAN-OS versions 10.2.11, 10.2.10-h3, 11.1.4-h4, 11.2.3-h3.
( PA-3410, PA-3420, and PA-3430 firewalls only ) Fixed an issue where the install failed when upgrading from PAN-OS 10.2.3-h3 and later 10.2 releases to PAN-OS 10.2.10 due to the number of configured vsys zones exceeding the zone limit in PAN-OS 10.2.10.
On PA-3410, PA-3420, and PA-3430 firewalls, the install fails when upgrading from PAN-OS 10.2.3-h3 and later 10.2 releases to PAN-OS 10.2.10 due the number of configured vsys zones exceeding the zone limit in PAN-OS 10.2.10. Workaround: Before installing PAN-OS 10.2.10, reduce the number of security zones to 40 zones or fewer for PA-3410 and PA-3420 firewalls, and to 100 zones or fewer for PA-3430 firewalls.
For more information:
https://docs.paloaltonetworks.com/pan-os/10-2/pan-os-release-notes/pan-os-10-2-10-known-and-addressed-issues/pan-os-10-2-10-h3-addressed-issues
https://docs.paloaltonetworks.com/pan-os/10-2/pan-os-release-notes/pan-os-10-2-10-known-and-addressed-issues/pan-os-10-2-10-known-issues
https://docs.paloaltonetworks.com/pan-os/10-2/pan-os-release-notes/pan-os-10-2-11-known-and-addressed-issues/pan-os-10-2-11-addressed-issues
https://docs.paloaltonetworks.com/pan-os/11-1/pan-os-release-notes/pan-os-11-1-4-known-and-addressed-issues/pan-os-11-1-4-h4-addressed-issues
https://docs.paloaltonetworks.com/pan-os/11-2/pan-os-release-notes/pan-os-11-2-3-known-and-addressed-issues/pan-os-11-2-3-h3-addressed-issues