Hi Mahendra,
Thanks for your question.
Please try any of the following workarounds.
Create SKUv1/v2 service with different name
Create SKUv1 service with same name
Create SKUv2 service with same name in another region
See related issues:
https://learn.microsoft.com/en-us/answers/questions/1655325/azure-api-management-fails-to-deploy
https://github.com/hashicorp/terraform-provider-azurerm/issues/25438
Please remember to mark 'Accept Answer' and 'Upvote' if you found the answer useful
Regards,
Abiola