THIS IS NOT RELATED TO A FREE ACCOUNT

I ran into the same issue—there was no option to create general compute, only SQL Warehouse or serverless.

Solution:
When creating a Databricks resource in the Azure portal, it defaults to a serverless workspace, which doesn’t allow you to create general-purpose clusters. To enable that option, choose the hybrid workspace type instead.

This limitation is not tied to using a free Azure account. Once you create a hybrid workspace, the option to create general compute will be available.