I raised a issue with Microsoft, this was the latest feedback from them:
Issue: Some Azure Backup customers may experience incomplete backup jobs and subsequent failures with the error UserErrorMaxConcurrentOperationLimitReached.
Impact: This issue is intermittently affecting multiple servers in West Europe region.
Root Cause: The problem arises due to a limitation in PostgreSQL – Flexible Servers, which allows only 10 parallel clone servers. As a result, multiple backup jobs are queued, and some are delayed for up to 2 days, causing the SAS Uri provided by Azure Backup to expire.
Next Steps:
• PostgreSQL team is working to increase the parallel job count to handle the load in the affected regions through a configuration update.
• Azure Backup team will increase the SAS URI timeout period.
Currently PostgreSQL and AzureBackup are working to implement the fixes for deployment in order to prevent this issue in the future.```