I reached out to Microsoft support as @SadiqhAhmed-MSFT mentioned and I got below response.
I have checked it and it works on my machine/account :) .
As per Microsoft there are the 2 mitigations provided by the production team:
- Use “template spec” feature instead of “template” feature. The old “template” feature related to gallery is deprecated and will be removed from portal soon. Please check https://learn.microsoft.com/en-us/azure/azure-resource-manager/templates/template-spec-convert for details.
- Let the tenant admin create the first gallery template to turn on the ability to create templates for all users under the same tenant.
I tried Template Spec and it works for me, The creation steps is basically the same as “template” feature.
- Go to “template spec” in portal
- Select “Create template spec”
- Fill in the form and create (note that templates with the same name will be overridden by the latest version)
Hope this answer helps others too.