Unable to create a VM - Subscription upgraded but spending limit still active

Hello Iara Bisaccia,

It seems that even after upgrading your subscription to an Azure Plan, the spending limit may still be active, which is preventing you from creating a VM. To resolve this issue, you will need to remove the spending limit manually. Here are the steps you can follow:

1. Sign in to the Azure portal as the Account Administrator.
2. Search for Cost Management + Billing.
3. In the subscriptions list, select your subscription (in this case, the Azure Plan).
4. Look for the banner that allows you to remove the spending limit. Below example for your reference.
5. Choose whether you want to remove the spending limit indefinitely or just for the current billing period.
   1. Select Select payment method to ensure a valid payment method is associated with your subscription.
6. Finally, select Finish.

If the spending limit banner does not appear, you may need to ensure you are in the correct directory in the Azure portal or navigate directly to your subscription's URL.

Refer the below snippet to change the current directory.

For more details, you can refer to the following documents.

1. https://learn.microsoft.com/en-us/azure/cost-management-billing/manage/spending-limit#remove-the-spending-limit-in-azure-portal
2. https://learn.microsoft.com/en-us/azure/cost-management-billing/manage/spending-limit#why-you-might-want-to-remove-the-spending-limit

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Thanks