Hi @logicabrity
Thank you for reaching out to Microsoft Q & A Platform .
Unfortunately , The error specifically means a regional capacity of the datacenter.
Suggestions are to retry the operation after a while or use different VM Sizes that succeed or to fallback to other regions which may have capacity.
Hope either of the above resolves your issue and would request you to accept the answer if it works out as well .
Thanks & Regards,
Pradeep