Hi Peter Kowalchuk,
Welcome to Microsoft Q&A forum.
As I understand, you are getting Terminal Provisioning State limit while deploying Azure Database for MySQL Flexible Server.
Could you please try to deploy the server by other ways with the same configuration like Azure Portal, Azure CLI, Bicep etc.
If this fails by other ways too, I would suggest you to raise support case for deeper investigation of the Flexible Server configuration details and error reason.
Hope this helps.
Let us know if you have any queries.
Thanks