Intermittent publishing issue after upgrading from Sitecore Publishing Service 5.x to 7.x

Background

Over the past few months, we've been diligently working on upgrading our platform from version 10.1.1 to 10.3.1. If you are using Publishing Service, you are required to upgrade to upgrade it to version 7.x per Sitecore's compatibility article: https://support.sitecore.com/kb?id=kb_article_view&sysparm_article=KB0761308 

The Problem

We followed the upgrade steps very carefully, however we noticed that if we did a big related item publish (home related and children) the following error was thrown, and the publish would fail:

[Error] Error in the "VariantsRelatedNodesTargetProducer"
System.InvalidOperationException: The ConnectionString property has not been initialized.
at System.Data.SqlClient.SqlConnection.PermissionDemand()
at System.Data.SqlClient.SqlConnectionFactory.PermissionDemand(DbConnection outerConnection)
at System.Data.ProviderBase.DbConnectionInternal.TryOpenConnectionInternal(DbConnection outerConnection, DbConnectionFactory connectionFactory, TaskCompletionSource`1 retry, DbConnectionOptions userOptions)
at System.Data.ProviderBase.DbConnectionClosed.TryOpenConnection(DbConnection outerConnection, DbConnectionFactory connectionFactory, TaskCompletionSource`1 retry, DbConnectionOptions userOptions)
at System.Data.SqlClient.SqlConnection.TryOpen(TaskCompletionSource`1 retry)
at System.Data.SqlClient.SqlConnection.OpenAsync(CancellationToken cancellationToken)
--- End of stack trace from previous location ---
at Sitecore.Framework.TransientFaultHandling.Sql.SqlRetryHelper.<>c__DisplayClass8_0`1.<b__0>d.MoveNext()
--- End of stack trace from previous location ---
at Sitecore.Framework.TransientFaultHandling.Sql.SqlRetryHelper.ExecuteAsync[T](DbConnection connection, Func`1 sqlWork, Func`3 commandRetryPolicy, CancellationToken cancellationToken)
at Sitecore.Framework.Publishing.Data.AdoNet.DatabaseConnection`1.ExecuteAsync[T](Func`2 dbWork)
at Sitecore.Framework.Publishing.Data.Classic.ClassicItemRelationshipRepository.GetAllRelationships(String source, IReadOnlyCollection`1 uris, IReadOnlyCollection`1 outFieldIdsWhitelist, IReadOnlyCollection`1 inFieldIdsWhitelist, Predicate`1 outRelPostFilter, Predicate`1 inRelPostFilter)
at Sitecore.Framework.Publishing.ManifestCalculation.PublishCandidateSource.GetRelatedNodes(IReadOnlyCollection`1 locators, Boolean includeRelatedContent, Boolean includeClones)
at Sitecore.Framework.Publishing.ManifestCalculation.VariantsRelatedNodesTargetProducer.ProcessCandidatesBatch(IList`1 locators)

The failure with error would only happen during large publishes of related items. Smaller page level publishes were perfectly fine.

After digging deeper into the logs, we noticed lot of OutOfMemory exceptions. All System.OutOfMemoryException instances were occuring when either creating a dictionary collection with certain capacity or when resizing dictionary collection to add more elements:

System.OutOfMemoryException: Exception of type 'System.OutOfMemoryException' was thrown.
   at System.Collections.Generic.Dictionary`2.Initialize(Int32 capacity)
   at System.Collections.Generic.Dictionary`2..ctor(Int32 capacity, IEqualityComparer`1 comparer)

--------------------------------------------

System.OutOfMemoryException: Exception of type 'System.OutOfMemoryException' was thrown.

   at System.Collections.Generic.Dictionary`2.Resize(Int32 newSize, Boolean forceNewHashCodes)

   at System.Collections.Generic.Dictionary`2.Resize()

   at System.Collections.Generic.Dictionary`2.TryInsert(TKey key, TValue value, InsertionBehavior behavior)

The Fix

When Publishing Service runs as a 32-bit application a large publish will produce an OutOfMemory exception when populating a dictionary as it reaches virtual memory limit very early. 

Even though the App Service in the Azure portal was set to 64 bit, we had to modify the Publishing Service web.config and set the "processPath" setting to "D:\Program Files\dotnet\dotnet.exe" instead of the "dotnet" environment variable.

After making this change, an App Service restart is required.

That's it! Back in business with those big publishes!