Hello Likith Jutur,
Thanks for your question.
The error message points to the server being in a dropping" state, meaning the server deletion has not yet been fully completed. When an Azure PostgreSQL Flexible Server resource is dropped it marks the instance as no longer in use (after which the customer is no longer billed for the resource) following which it proceeds to clean-up the internal resources associated with the instance.
This server name already exists and you need to provide a unique server name.
See external doc: https://registry.terraform.io/modules/intel/azure-postgresql-flexible-server/intel/latest/examples/intel-optimized-pgsql-flexible-server-db_parameters
Please let me know if you have further questions**
You can mark it 'Accept Answer' if this helped.