Thank you for posting this in Microsoft Q&A.
I understand you are facing an issue with their Azure Free tier account where you see two unknown directories in Portal settings and are unable to remove them or create a new one.
I'm sorry to hear that you're facing this issue with your Azure Free tier account. Based on you provided your account Directories+Subscriptions image I confirmed you have enabled Advanced filters. After enabling Advanced filters, you can create, modify, or delete subscription filters by selecting Modify advanced filters.
The Default filter shows all subscriptions to which you have access. This filter is used if there are no other filters, or when the active filter fails to include any subscriptions. You may also see a filter named Imported filter, which includes all subscriptions that had been selected previously.
Can you please check is there any filters in your account. You can see the default filter active like this as shown in the image below. You can't delete or update the Default filter or a filter that is currently active. This is expected behavior.
For more information about Directories + subscriptions
When you create a new Azure account, a default directory is created for you automatically. This directory is known as the "home" directory. Did you get any errors while creating or removing directories? If you have observed anything, please share with us.
Can you try to create or remove directories by disabling Advanced filters? If there are any issues, please let me know.
For your reference: Delete the organization
Hope this helps. Do let us know if you any further queries.
Thanks,
Navya
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