Here is recent update for your reference. Hope this helps.
There are 2 reasons why a customer may receive the mentioned error messages:
1) The customer is deploying into a so-called “hot” region which is out of capacity due to being in high-demand. In this case, there is very little the MHSM team can do other than dock new hardware, which is expected later this summer (June-September 2022). Customers are advised to deploy into a different location if possible.
‘Hot’ regions include:
• US West
• US West 3
• US South
• US East
• Europe West
2) The customer is deploying into a region undergoing a temporary internal infrastructure update, which is resulting in short-term limited capacity. At this time, customers are advised to retry every few hours as on-call engineers work to mitigate capacity issues. By Monday 05/02/2022, we no longer expect to have capacity problems as a result of this update.
As I can see you are trying to create the MHSM in "Europe West region" which is one of the ‘hot’ regions and that’s why you are receive the error message. As you can see, there’s little we can do on this scenario, however, if you need for a specific number of units in a certain region (current or projected), I'd recommend you reach out to MS support and share that data with engineering team so we can plan accordingly and see if there are any preemptive measures we can take.