Firstly, apologies for any inconvenience this issue may have caused. Based on the error message you have shared, this is a know issue and from the latest updated on the issue the fix has been deployed and it will take some time to be deployed globally.
I would request you to try to VM deployment after sometime and see if you are still running into issue.
Also, if you want to report anything further on this, please add your comments on the issue:
https://github.com/Azure/azure-powershell/issues/12776
Hope this helps.
Please 'Accept as answer' if the provided information is helpful, so that it can help others in the community looking for help on similar topics.