@Rajesh Swarnkar Thank you for reaching out to us, As I understand you are unable to create new Entra ID tenant with PAYG account earlier this was working before.
Tenant creation is important for organizations to help manage their instances of Microsoft services. However, allowing employees unrestricted ability to generate free tenants creates liability and security concerns for our customers. It forces bad actors to purchase or activate a trial, which triggers a trade Screen that increases the likelihood of catching bad actors earlier in the chain of tenant creation.
A recent hotfix now restricts tenant creation by requiring paid P1 or greater licenses. If the Entra ID P2 license is a trial license, that is not enough. Customers attempting to create tenants with trial P1+ licenses will also fail in creating tenants. I hope this helps.
Refer to this guide - https://learn.microsoft.com/en-us/entra/fundamentals/get-started-premium sign up for a paid P1 license.
Customers in this situation who need a new trial tenant can sign up for a Free Azure Account
Let me know if you have any further questions, feel free to post back.
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