@Nutmix Thanks for reaching out and apology for the inconvenience due to this issue.
To ensure that existing workloads in the region continue to run and scale within normal variances, we are restricting quota requests for net-new deployments in the region, as well as requests for large quota increases. These restrictions will eventually be relaxed. However, there is not a near-term ETA at this time.
You can try changing the function app plan and see if it helps you. In case you still want to deploy the function app in the same region in North Europe then we can connect offline so I can get more details and business justification so I can reach out to my Product team. Please note that this doesn't guarantee that you will be able to deploy your function app in the restricting quota region.