Hi emmanuel udoji,
Thank you for reaching out to us on the Microsoft Q&A forum.
To create a new directory in Azure, you usually create a new Microsoft Entra ID tenant. This involves using the azure portal to create a new directory, which can be either an Azure Active Directory or Azure Active Directory B2C tenant.
Microsoft 365 (M365) membership does not mean that you can create Azure membership. The M365 Azure allows to reach the portal, but Azure does not allow the creation of Azure Subscription. You have to check that your billing account has been configured properly for Azure. If your default billing account is M365, then you have to choose an Azure billing account while establishing membership.
Some azure membership, such as free trial account, can limit the directory construction. While trying to create azure subscription, if your default billing account is an M365 billing account, you are unable to create an Azure subscription under it. You have to choose your Azure Billing account. After that, you should be able to choose an azure plan.
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