diff --git a/pkg/arc/consts.go b/pkg/arc/consts.go
index 0ad71bd3..d2766e11 100644
--- a/pkg/arc/consts.go
+++ b/pkg/arc/consts.go
@@ -19,7 +19,15 @@ var (
 	}
 
 	// Arc services that may be present (not all are guaranteed to exist on every installation)
-	arcServices = []string{"himdsd", "gcarcservice", "extd"}
+	arcServices = []string{"himdsd", "gcarcservice", "gcad", "extd"}
+
+	// Arc service groups required for installation verification. At least one
+	// service in each group must be active.
+	arcRequiredServiceGroups = [][]string{
+		{"himdsd"},
+		{"gcarcservice", "gcad"},
+		{"extd"},
+	}
 
 	// Arc agent binary paths
 	arcBinaryPaths = []string{
@@ -42,7 +50,9 @@ var (
 	arcServiceFiles = []string{
 		"/lib/systemd/system/himdsd.service",
 		"/lib/systemd/system/gcarcservice.service",
+		"/lib/systemd/system/gcad.service",
 		"/etc/systemd/system/himdsd.service",
 		"/etc/systemd/system/gcarcservice.service",
+		"/etc/systemd/system/gcad.service",
 	}
 )
diff --git a/pkg/arc/helpers.go b/pkg/arc/helpers.go
index 839900d4..5440d20f 100644
--- a/pkg/arc/helpers.go
+++ b/pkg/arc/helpers.go
@@ -28,12 +28,31 @@ func isArcServicesRunning(ctx context.Context, logger *slog.Logger) bool {
 	if !isArcAgentInstalled() {
 		return false
 	}
-	for _, service := range arcServices {
-		if !utilexec.IsServiceActive(ctx, logger, service) {
+	if !areArcServiceGroupsActive(ctx, logger, arcRequiredServiceGroups, utilexec.IsServiceActive) {
+		return false
+	}
+	return utilexec.RunCmdAt(ctx, logger, slog.LevelDebug, utilexec.Pgrep(), "-f", "azcmagent") == nil
+}
+
+func areArcServiceGroupsActive(
+	ctx context.Context,
+	logger *slog.Logger,
+	serviceGroups [][]string,
+	isServiceActive func(context.Context, *slog.Logger, string) bool,
+) bool {
+	for _, serviceGroup := range serviceGroups {
+		serviceGroupActive := false
+		for _, service := range serviceGroup {
+			if isServiceActive(ctx, logger, service) {
+				serviceGroupActive = true
+				break
+			}
+		}
+		if !serviceGroupActive {
 			return false
 		}
 	}
-	return utilexec.RunCmdAt(ctx, logger, slog.LevelDebug, utilexec.Pgrep(), "-f", "azcmagent") == nil
+	return true
 }
 
 func ptrDeref[T any](p *T) T {
diff --git a/pkg/arc/helpers_test.go b/pkg/arc/helpers_test.go
new file mode 100644
index 00000000..82d49a23
--- /dev/null
+++ b/pkg/arc/helpers_test.go
@@ -0,0 +1,87 @@
+package arc
+
+import (
+	"context"
+	"io"
+	"log/slog"
+	"slices"
+	"testing"
+)
+
+func TestAreArcServiceGroupsActive(t *testing.T) {
+	t.Parallel()
+
+	ctx := context.Background()
+	logger := slog.New(slog.NewTextHandler(io.Discard, nil))
+
+	tests := []struct {
+		name           string
+		activeServices map[string]bool
+		want           bool
+	}{
+		{
+			name: "legacy service active",
+			activeServices: map[string]bool{
+				"himdsd":       true,
+				"gcarcservice": true,
+				"extd":         true,
+			},
+			want: true,
+		},
+		{
+			name: "renamed service active",
+			activeServices: map[string]bool{
+				"himdsd": true,
+				"gcad":   true,
+				"extd":   true,
+			},
+			want: true,
+		},
+		{
+			name: "neither service active",
+			activeServices: map[string]bool{
+				"himdsd": true,
+				"extd":   true,
+			},
+			want: false,
+		},
+		{
+			name: "required service inactive",
+			activeServices: map[string]bool{
+				"gcad": true,
+				"extd": true,
+			},
+			want: false,
+		},
+	}
+
+	for _, tt := range tests {
+		tt := tt
+		t.Run(tt.name, func(t *testing.T) {
+			t.Parallel()
+
+			got := areArcServiceGroupsActive(ctx, logger, arcRequiredServiceGroups, func(_ context.Context, _ *slog.Logger, service string) bool {
+				return tt.activeServices[service]
+			})
+			if got != tt.want {
+				t.Fatalf("areArcServiceGroupsActive() = %v, want %v", got, tt.want)
+			}
+		})
+	}
+}
+
+func TestArcServiceConstantsIncludeRenamedService(t *testing.T) {
+	t.Parallel()
+
+	const renamedService = "gcad"
+
+	if !slices.Contains(arcServices, renamedService) {
+		t.Fatalf("arcServices must include gcad for azcmagent v1.62+ cleanup")
+	}
+	if !slices.Contains(arcServiceFiles, "/lib/systemd/system/"+renamedService+".service") {
+		t.Fatalf("arcServiceFiles must include /lib/systemd/system/gcad.service")
+	}
+	if !slices.Contains(arcServiceFiles, "/etc/systemd/system/"+renamedService+".service") {
+		t.Fatalf("arcServiceFiles must include /etc/systemd/system/gcad.service")
+	}
+}