Unable to create user . Error: Tenant Object quota exceed the limit. Need to increase it.

Hello Robin,

I believe the "Tenant Object quota exceed the limit" error occurs because the Microsoft Entra ID (Azure AD) tenant you are using is capped at a default limit, which is blocking the creation of new resources.

Some suggested fixes are below:

If you are currently only using the default ://onmicrosoft.com domain, adding and verifying your official business domain will automatically trigger Microsoft's backend to expand your tenant quota from 50,000 to 300,000 objects.

1. Sign in to the Microsoft Entra admin center.
2. Navigate to Identity > Settings > Domain names
3. Click Add custom domain and type in your company domain name.
4. Copy the provided TXT or MX record and add it to your public DNS registrar (e.g., GoDaddy, Namecheap).
5. Click Verify in the Entra center. Once verified, your quota ceiling will scale up automatically

If this doesnt work, the next option will be to go to Identity > Users > Deleted users and permanently delete any objects there.

Should neither of these options not work, I would then suggest reaching out to Microsoft via a support ticket.