I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that "[The question author cannot accept their own answer. They can only accept answers by others] (https://docs.microsoft.com/en-us/answers/support/accepted-answers#why-only-one-accepted-answer)", I'll repost your solution in case you'd like to "[Accept] (https://docs.microsoft.com/en-us/answers/support/accepted-answers#accepted-answer-in-a-question-thread)" the answer.
As per your solution there needs to be a VM in the subscription before it will create the LAW and DCR.
Please "Accept the answer" if the information helped you. This will help us and others in the community as well.