I do agree with Thomas' point and am posting the solution for the community's benefit. If anyone is having the same issue, they can resolve it with the posted answer.
There can be temporary issues or delays in resource creation. These errors may be due to background processes that might not be completed properly or network congestion.
When resources like the MC_ resource group, load balancers, and public IPs aren't set up correctly, it could be due to a transient error. In many cases, this type of error can be resolved by retrying the deployment process.
Reference: https://learn.microsoft.com/en-us/azure/container-apps/revisions