It might be that you have rules within your Azure subscription or tenancy that automatically apply network rules to restrict access to resources to only be allowed from certain IP addresses. If this is the case, you'll want to use the Set Authorized IP Ranges option during the deployment. You can read more about what that means in the FAQ.
The error reported by the application indicates that your subsection is limited by enterprise IT deny assignment rules for: resource 'kubernetes' was disallowed by policy. It is missing something called a "guardrails tag" and provides an link to an internal service-now exemption form that I am not able to share in a public forum.
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