I was trying to deploy yesterday 17th September 2024 and received same erorr. I had this error via bicep deployment and via clickops in the portal. If your getting this issue in portal then there is nothing much you can do as a consumer .... I logged a support ticket, Azure support came back that it was a backend problem with the dns resolver service in Australia East region ....
here is my error:
{
"code": "InternalServerError",
"message": "Operation has exceeded maximum processing count. dnsResolverResourceId=/subscriptions/4d8b1cb3-9953-4173-b603-88890be2d8a7/resourceGroups/rg-sandpit-dns-resolver/dnsResolvers/dnsr-sandpit-core-01, circuitBreaker=[state=Open, processedCount=6, maxProcessedCount=5]"
}
Here is the email back from Azure Support.
I have investigated this issue and it appears a close match to Platform issue with DNS resolver in multiple regions yesterday. This issue has been resolved around midnight yesterday in Australia time.
May I request you to run operation again and update me in case there are still issues.
Hope this helps someone.