The CPU Quota Limit is calculated on vCPUs used in created/existing VMs per location, it doesn't matter if the VM is running or deallocated.
Based on your example the answer will be "no", you are not able to create another VM at all because you reached the CPU Quota.
You have to delete the 16 vCPU VM (the disk of the VM will not deleted by default and can be re-used in another VM later for example).
Maybe this is helpful.
Regards
Andreas Baumgarten
(Please don't forget to Accept as answer if the reply is helpful)