If you have downloaded an Dynamics 365 for Operations / AX7 VM for Development especially for Retail do have a look at this article
https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/dev-tools/access-instances
Unless you do the steps mentioned in the Retail Configuration section in this link you will get errors like :
In MPOS trying to activate would give an error – The service is not provisioned for the same tenant. User is hitting a retail server that does not belong to the same tenant as the Activation account.
Also if you try to Associate User Identity with a worker in AX it will result in an error like the service is not reachable.
Note – You need to install KB3170424 if you are facing this issue in a LCS hosted VM.
-Hitesh Manglani