You have a raster layer with a hillshade effect turned on. Basemap layers and map services do not support defining the hillshade effect on the fly by the illumination properties of the map.
Solutions
- Turn off the hillshade effect on your raster layer.
- Alternatively, precompute the hillshade and add the derived data source as a new map layer. See the Hillshade geoprocessing tool in the Spatial Analyst toolbox for more information.
More information
For best display performance, you should precompute your hillshade rather than rely on dynamic creation. When working with dynamic map services, an alternative to putting all map layers into your map service is to build a separate cached map service. You can build hillshading into a cached map service and use dynamic map services to display operational information on top of your basemap.
See A framework for deploying Web GIS for more information about implementation patterns for web maps.