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There has been a recent service-side issue seen by the Apps on-call team where app creation fails during the internal โcreate_compute_resourcesโ step and surfaces exactly this error message; one root cause was a regional backend failure (gatekeeper not returning a cluster tier for certain Free/Pharos workspaces). In those windows, delete-and-retry wonโt help until the region recovers.
I guess you can try once again tomorrow. According to the user who started above thread it started to work next day.
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