Thanks to all of you for reporting this issue. This issue has been fixed now as confirmed by the internal teams.
Issue summary: Customers were receiving this error when trying to create a VM with specific images
Error - [This virtual machine requires a subscription without any spending limit or temporary payment method set. Use a different subscription or update your subscription (requires account administrator privileges) at Account Center to continue]
Customers should be able to create Windows Server, Windows 10, Windows 11 offers without seeing this error now.
Regarding SQL offers, internal team confirmed that -
Due to SQL Server licensing rules, SQL Server Enterprise, Standard, and Web editions are not available in MSDN/Free accounts. We are in the process of making Developer and Express edition images on all versions of SQL Server/Windows (and free Linux distros) available in Free accounts.
If anyone is still seeing this issue, please let me know in the comments and I can investigate further. Thanks.