Service Fabric offers the capability to rebalance partitions whenever a node is removed or added to the cluster. The Service Fabric Cluster Resource Manager will move one or more partitions to this node so more work can be done.
Imagine a reliable actor service which has thousands of actors running who are distributed across multiple partitions. If the Resource Manager decides to move one or more partitions, will this cause any downtime? Or does rebalancing partitions work the same as upgrading a service?
They act pretty much the same way, The main difference I can point is that Upgrades might affect only the services being updated, and re-balancing might affect multiple services at once. During an upgrade, the cluster might re-balance the services as well to fit the new service instance in a node.
Adding or Removing nodes I would compare more with node failures. In any of these cases they will be rebalanced because of the cluster capacity changes, not because of the service metric\load changes.
The main difference between a node failure and a cluster scaling(Add/remove node) is that the rebalance will take in account the services states during the process, when a infrastructure notification comes in telling that a node is being shutdown(for updates or maintenance, or scaling down) the SF will ask the Infrastructure to wait so it can prepare for this announced 'failure', and then start re-balancing the services.
Even though re-balancing cares about the service states for a scale down it should not be considered more reliable than a node failure, because the infrastructure will wait for a while before shutting down the node(the limit it can wait will depend on the reliability tier you defined for your cluster), until SF check if the services meet health conditions, like turn down services and creating new ones, checking if they will run fine without errors, if this process takes too long, these service might be killed once the timeout is reached and the infrastructure proceed with the changes, Also, the new instances of the services might fail on new nodes, forcing the services to move again.
When you design the services is safer to consider the re-balancing as a node failure, because at the end is not much different. Your services will move around, data stored in memory will be lost if not persisted, the service address will change, and etc. The services should have replicated data and the clients should always use a retry logic and refresh the services location to reduce the down time.