Update or reapply of SP for VDSs on SDL3.7 with UP3 fails with the following error message:
Service package update failed for account: domain.com due to error Server failed to perform operation due to a run time error. Failed to run script due to timeout error.
This is a known issue and was fixed for SDL 4.1.
For SDL 3.7 we would recommend running the following OpenAPI command at the end of each SD installation in order to set the timeout: