To resolve this error is easy. At first glance, azure does not make it abvious. you will have to dig further. Do this.

1. Click on the link of the deploment where it says: Operation Details (look at the red circle in my image)

2. Look at the json output it will say: 

 "message": "Provisioning in requested region is not supported. Your subscription might not have access to create a server in the selected region. (https://aka.ms/mysqlcapacity)"

or

Provisioning in requested region is not supported. Your subscription might not have access to create a server in the selected region

Solution:

To resolve this in this example, just select a new region. For example, i was selecting east US, i changed it to US WEST 2 and it work. So try a region where not much in demand. Maybe try another country? I was trying the free tier version.