When you click Activate sandbox, review permissions, etc., and it completes setting up your sandbox, you should have a cloud shell on the right side that is mostly empty with a gary [ ~ }$ prompt. At this point you should click copy button on left for Task 1 and paste into the cloud shell window, then press enter.
After you paste/press enter it will run the command and show you the output.
In your screenshot, I see some extra commands such as "az group create" etc. Did you enter these?
Something to keep in mind is you need to Activate sandbox and complete both Exercises in the module before the sandbox expires. The sandbox is valid for 1 hour. If the sandbox expires you need to go back to "Unit 3 Exercise - Create an Azure Virtual Machine", click Activate sandbox, complete exercise, then finish the module and complete Unit 7 exercise.
When you are on a exercise page you can see the remaining time for the sandbox.
It could be there was some sort of temporary issue that prevented your sandbox from creating properly. What you could do is allow your sandbox to expire, Activate a new one, then complete the exercises.
I just tested and was able to complete the exercise using a fresh sandbox.