Hi @Venkat and apologies for the delayed response.
Based on the error message you provided, it seems that there is an issue with the proximity placement group (PPG) for the target VM in your ARM template. To resolve, please ensure that the PPG ID for the target VM is correctly specified in the ARM template and that it matches the ID of the target PPG. Additionally, verify that the target PPG exists in the target location (Norway West) and that you have the necessary permissions and access rights to create and manage resources in the target location.
If the issue persists, please share the ARM template you're using and steps you followed so we can better assist.