@Daniyal Mirza The vCPU quotas for virtual machines and virtual machine scale sets are arranged in two tiers for each subscription, in each region. The first tier is the Total Regional vCPUs, and the second tier is the various VM size family cores such as the D-series vCPUs. Any time a new VM is deployed the vCPUs for the VM must not exceed the vCPU quota for the VM size family or the total regional vCPU quota. If either of those quotas are exceeded, the VM deployment will not be allowed. There is also a quota for the overall number of virtual machines in the region. The details on each of these quotas can be seen in the Usage + quotas section of the Subscription page in the Azure portal, or you can query for the values using PowerShell.
Quota is calculated based on the total number of cores in use both allocated and deallocated. If you need additional cores, request a quota increase or delete VMs that are no longer needed.
You can refer to this document as well for more information.
f the quota limit is reached then yo might need to open a Support Ticket since they will be able to help you out with quota increase. If you don't have the ability to open a technical support ticket, you can email me with Subject as "ATTN: Preeti" at AzCommunity[at]microsoft[dot]com and provide me with your SubscriptionID and link to this thread. I can then enable your subscription for one time free support.
Hope it helps.
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