Hi @Bakhtawer Shahzad,
please take a look here:
- By default, a maximum of 50,000 Microsoft Entra resources can be created in a single tenant by users of the Microsoft Entra ID Free edition. If you have at least one verified domain, the default Microsoft Entra service quota for your organization is extended to 300,000 Microsoft Entra resources. The Microsoft Entra service quota for organizations created by self-service sign-up remains 50,000 Microsoft Entra resources, even after you perform an internal admin takeover and the organization is converted to a managed tenant with at least one verified domain. This service limit is unrelated to the pricing tier limit of 500,000 resources on the Microsoft Entra pricing page. To go beyond the default quota, you must contact Microsoft Support.
Source: Microsoft Entra service limits and restrictions
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Regards
Andreas Baumgarten