Api Management: Unable to activate API service at this time

We had an APIM instance created with Standard SKU, but then we had to delete it (since there is no way of upgrading it) and create a new one with Standard V2 SKU this time. Since it was initially a soft delete, I had to delete it hard first and that looked like it worked.

After that, trying to create an instance (multiple times) with the same name as a deleted one would constantly fail with the following:

Conflict: { "status": "Failed", "error": { "code": "ActivationFailed", "message": "Unable to activate API service at this time. This could be temporary issue in the region. Please check https://aka.ms/azurestatus for any issues. If the issue persists after retry, please open a support case for your API management service using the Azure portal.Please provide correlationId 477f7b20-8703-4b3d-bdd4-add19f248ab0 and TimeStamp 6/3/2024 10:04:28 PM." } }

It did work to create an instance with a different/new name, but I wanted the old name.

Does anyone know what the problem could be?

I tried PowerShell, Cli, Azure Portal way to delete the API Management instance, and every time after the deletion, the query with az apim show it would correctly say that:

(ResourceNotFound) The Resource 'Microsoft.ApiManagement/service/XXXX' under resource group 'XXXX' was not found.

However, creating it with the same name still did not work.