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I assume I am hitting against the <https://docs.microsoft.com/en-us/azure/api-management/api-management-features|Direct management API limit> ?  If so, is there any way to use Pulumi to deploy a policy to the consumption tier of API Management?

I had the same error. It was related to the name of the policy. The policy name was to long. When i changed the name to "policy" inside the constructor, then the error disappaered.