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I have seen that before, but not for Azure Functions. In my case it was a location thing. Try running with `--debug` and see if you get a more detailed error message.

I _think_ it's because I already have an AppService in this RG?

I just tried to create it by-hand and I get all kinds of "You can't, because Reasons, sorry"

Unfortunately I'm not familiar with AppService to know its implications for Functions, but does sound like an Azure thing rather than a Pulumi thing.