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It sounds like an Azure issue… Have you checked the activity logs - maybe some more details in there?

The resource is not being created to check the activity logs. While creating the server itself, it gets stuck and then later I get the error mentioned. Also wanted to know, if we don't specify anything for network parameter, will it consider publicNetworkAccess to enabled by default?

You should be able to see its activity logs if you look in the resource group logs

Yes correct. I can see but again the same error code and description. Detailed error description is not provided.

I’m afraid you may need to ask Azure support then…