I have an Azure Storage Account with RA-GRS (West US & EAST US) and I could failover using the below command
az storage account failover --no-wait --yes --name storageaccountName
az storage account update --name storageaccountName --resource-group rg --sku Standard_RAGRS
However the second command failed to execute indicating "Operation is currently performing on this storage account that requires exclusive access "
As it failed SKU didn't set as Standard_RAGRS and still LRS.
How do I set the SKU to "Standard_RAGRS" after failover with "--no-wait" parameter included.
--no-wait is part of the az CLI itself, not the underlying operation. It tells az CLI to return, even before the underlying operation is finished. So your storage account failover process is probably still running - and might take a bit to complete. Before that isn't done, you cannot do another update operation on it.