Deploying Azure Lab Services in MS Teams fails

Hi,

This semester, for some reason, deploying labs using Azure Lab Services fails. This used to work fine, and we have deployed several labs in Teams in the past.

I have tried with different Lab Plans in different resource groups. Used different images and settings, but it seems the lab creation fails at the start.

{
    "authorization": {
        "action": "Microsoft.LabServices/labs/write",
        "scope": "/subscriptions/xxxx/resourceGroups/xxxx/providers/Microsoft.LabServices/labs/xxxx"
    },
    "caller": "xxxx",
    "channels": "Operation",
    "claims": {
        "aud": "https://management.azure.com",
        "iss": "https://sts.windows.net/xxxx/",
        "iat": "xxxx",
        "nbf": "xxxx",
        "exp": "xxxx",
        "aio": "xxxx",
        "appid": "xxxx",
        "appidacr": "xxxx",
        "http://schemas.microsoft.com/identity/claims/identityprovider": "https://sts.windows.net/xxxx/",
        "idtyp": "xxxx",
        "http://schemas.microsoft.com/identity/claims/objectidentifier": "xxxx",
        "rh": "xxxx",
        "http://schemas.xmlsoap.org/ws/2005/05/identity/claims/nameidentifier": "xxxx",
        "http://schemas.microsoft.com/identity/claims/tenantid": "xxxx",
        "uti": "xxxx",
        "ver": "xxxx",
        "xms_act_fct": "xxxx",
        "xms_ftd": "xxxx",
        "xms_idrel": "xxxx",
        "xms_rd": "xxxx",
        "xms_sub_fct": "xxxx",
        "xms_tcdt": "xxxx"
    },
    "correlationId": "xxxx",
    "description": "",
    "eventDataId": "xxxx",
    "eventName": {
        "value": "EndRequest",
        "localizedValue": "End request"
    },
    "category": {
        "value": "Administrative",
        "localizedValue": "Administrative"
    },
    "eventTimestamp": "2026-01-08T10:38:57.6757097Z",
    "id": "/subscriptions/xxxx/resourcegroups/xxxx/providers/Microsoft.LabServices/labs/xxxx/events/xxxx/ticks/xxxx",
    "level": "Error",
    "operationId": "xxxx",
    "operationName": {
        "value": "Microsoft.LabServices/labs/write",
        "localizedValue": "Create or Update Lab"
    },
    "resourceGroupName": "xxxx",
    "resourceProviderName": {
        "value": "Microsoft.LabServices",
        "localizedValue": "Microsoft.LabServices"
    },
    "resourceType": {
        "value": "Microsoft.LabServices/labs",
        "localizedValue": "Microsoft.LabServices/labs"
    },
    "resourceId": "/subscriptions/xxxx/resourcegroups/xxxx/providers/Microsoft.LabServices/labs/xxxx",
    "status": {
        "value": "Failed",
        "localizedValue": "Failed"
    },
    "subStatus": {
        "value": "",
        "localizedValue": ""
    },
    "submissionTimestamp": "2026-01-08T10:40:11Z",
    "subscriptionId": "xxxx",
    "tenantId": "xxxx",
    "properties": {
        "statusMessage": "{\"status\":\"Failed\",\"error\":{\"code\":\"ResourceOperationFailure\",\"message\":\"The resource operation completed with terminal provisioning state 'Failed'.\",\"details\":[{\"code\":\"InternalServerError\",\"message\":\"An internal server error occurred. Please try again later.\",\"additionalInfo\":[]}]}}",
        "eventCategory": "Administrative",
        "entity": "/subscriptions/xxxx/resourcegroups/xxxx/providers/Microsoft.LabServices/labs/xxxx",
        "message": "Microsoft.LabServices/labs/write",
        "hierarchy": "xxxx/xxxx/xxxx/xxxx"
    },
    "relatedEvents": []
}

Deploying the lab from the browser is successful, though.