Hi Julian Wood •,
I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others ", I'll repost your solution in case you'd like to "Accept " the answer.
Solution:
It turns out the server name and/or the vnet name need to be globally unique. So a command like this worked for us.
az postgres flexible-server create --resource-group occplatforms-liftops-scheduleapp-dev-rg --name occdevtestpostgres --vnet occdevtestvnet --location westus2
If you have any other questions or are still running into more issues, please let me know. Thank you again for your time and patience throughout this issue.
Please remember to "Accept Answer" if any answer/reply helped, so that others in the community facing similar issues can easily find the solution.
Thanks