@Rishi Khemka Thanks for getting back and clarifying.
I was able to reproduce this issue at my end too. See the below screenshot:
Cause:
The issue is due to an existing Free tier resource that has already been created in that particular resource region.
Action Plan:
The workarounds would be trying different region
or upgrading the Free pricing tier to standard tier
if quota is utilized. Please always choose the best that fits with your subscription limits and needs.
I hope this helps.