Elastic Agent enrolls but stuck in UPDATING status - not related to upgrade

I have an issue with freshly deployed sytem: after (successfully) installing and enrolling agent to fleet, the agent status is foreverin UPDATING state and it appears to be not running, although the service is in running state.

C:\Program Files\Elastic\Agent>.\elastic-agent status
Error: failed to communicate with Elastic Agent daemon: rpc error: code = Unavailable desc = connection error: desc = "transport: Error while dialing open \\\\.\\pipe\\elastic-agent-system: The system cannot find the file specified."
C:\Program Files\Elastic\Agent>.\elastic-agent version --binary-only
Binary: 8.0.1 (build: 6e9dd49b5da9c045125078bb95be9f0dc27e8263 at 2022-02-24 18:24:47 +0000 UTC)

The logs do not appear to contain anything informative:

{"log.level":"info","@timestamp":"2022-03-02T19:34:36.702Z","log.origin":{"file.name":"application/application.go","file.line":67},"message":"Detecting execution mode","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:36.703Z","log.origin":{"file.name":"application/application.go","file.line":76},"message":"Agent is managed locally","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:36.704Z","log.origin":{"file.name":"capabilities/capabilities.go","file.line":59},"message":"capabilities file not found in C:\\Program Files\\Elastic\\Agent\\capabilities.yml","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:37.022Z","log.logger":"composable.providers.docker","log.origin":{"file.name":"docker/docker.go","file.line":43},"message":"Docker provider skipped, unable to connect: protocol not available","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:37.049Z","log.logger":"api","log.origin":{"file.name":"api/server.go","file.line":62},"message":"Starting stats endpoint","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:37.049Z","log.origin":{"file.name":"application/local_mode.go","file.line":168},"message":"Agent is starting","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:37.050Z","log.logger":"api","log.origin":{"file.name":"api/server.go","file.line":64},"message":"Metrics endpoint listening on: \\\\.\\pipe\\elastic-agent (configured: npipe:///elastic-agent)","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:37.054Z","log.origin":{"file.name":"application/local_mode.go","file.line":178},"message":"Agent is stopped","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:37.054Z","log.origin":{"file.name":"application/periodic.go","file.line":79},"message":"Configuration changes detected","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:37.087Z","log.origin":{"file.name":"stateresolver/stateresolver.go","file.line":48},"message":"New State ID is 068BkJgy","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:37.087Z","log.origin":{"file.name":"stateresolver/stateresolver.go","file.line":49},"message":"Converging state requires execution of 2 step(s)","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:37.300Z","log.origin":{"file.name":"operation/operator.go","file.line":284},"message":"operation 'operation-install' skipped for metricbeat.8.0.1","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:37.690Z","log.origin":{"file.name":"log/reporter.go","file.line":40},"message":"2022-03-02T22:34:37+03:00 - message: Application: metricbeat--8.0.1[8d53fb1d-9775-430f-bd51-e54107abf672]: State changed to STARTING: Starting - type: 'STATE' - sub_type: 'STARTING'","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:38.366Z","log.origin":{"file.name":"operation/operator.go","file.line":284},"message":"operation 'operation-install' skipped for filebeat.8.0.1","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:38.781Z","log.origin":{"file.name":"log/reporter.go","file.line":40},"message":"2022-03-02T22:34:38+03:00 - message: Application: filebeat--8.0.1--36643631373035623733363936343635[8d53fb1d-9775-430f-bd51-e54107abf672]: State changed to STARTING: Starting - type: 'STATE' - sub_type: 'STARTING'","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:39.001Z","log.origin":{"file.name":"operation/operator.go","file.line":284},"message":"operation 'operation-install' skipped for metricbeat.8.0.1","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:39.157Z","log.origin":{"file.name":"log/reporter.go","file.line":40},"message":"2022-03-02T22:34:39+03:00 - message: Application: metricbeat--8.0.1--36643631373035623733363936343635[8d53fb1d-9775-430f-bd51-e54107abf672]: State changed to STARTING: Starting - type: 'STATE' - sub_type: 'STARTING'","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:39.163Z","log.origin":{"file.name":"stateresolver/stateresolver.go","file.line":66},"message":"Updating internal state","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:39.163Z","log.origin":{"file.name":"application/periodic.go","file.line":101},"message":"No configuration change","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:39.167Z","log.origin":{"file.name":"stateresolver/stateresolver.go","file.line":48},"message":"New State ID is 068BkJgy","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:39.167Z","log.origin":{"file.name":"stateresolver/stateresolver.go","file.line":49},"message":"Converging state requires execution of 0 step(s)","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:39.167Z","log.origin":{"file.name":"stateresolver/stateresolver.go","file.line":66},"message":"Updating internal state","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:43.886Z","log.origin":{"file.name":"log/reporter.go","file.line":40},"message":"2022-03-02T22:34:43+03:00 - message: Application: filebeat--8.0.1--36643631373035623733363936343635[8d53fb1d-9775-430f-bd51-e54107abf672]: State changed to RUNNING: Running - type: 'STATE' - sub_type: 'RUNNING'","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:49.165Z","log.origin":{"file.name":"application/periodic.go","file.line":101},"message":"No configuration change","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:50.311Z","log.origin":{"file.name":"log/reporter.go","file.line":40},"message":"2022-03-02T22:34:50+03:00 - message: Application: metricbeat--8.0.1[8d53fb1d-9775-430f-bd51-e54107abf672]: State changed to RUNNING: Running - type: 'STATE' - sub_type: 'RUNNING'","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:51.194Z","log.origin":{"file.name":"log/reporter.go","file.line":40},"message":"2022-03-02T22:34:51+03:00 - message: Application: metricbeat--8.0.1--36643631373035623733363936343635[8d53fb1d-9775-430f-bd51-e54107abf672]: State changed to RUNNING: Running - type: 'STATE' - sub_type: 'RUNNING'","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:34:59.178Z","log.origin":{"file.name":"application/periodic.go","file.line":101},"message":"No configuration change","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:35:11.385Z","log.origin":{"file.name":"application/periodic.go","file.line":101},"message":"No configuration change","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:35:21.391Z","log.origin":{"file.name":"application/periodic.go","file.line":101},"message":"No configuration change","ecs.version":"1.6.0"}
{"log.level":"info","@timestamp":"2022-03-02T19:35:31.403Z","log.origin":{"file.name":"application/periodic.go","file.line":101},"message":"No configuration change","ecs.version":"1.6.0"}

I know this issue appears to be very common but I could not google a relevant topic.

Any help with diagnostics would be appreciated

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