Hi Lily S,
Thank you for reaching out to us on the Microsoft Q&A forum.
As you re-deploy the ARM templates to make incremental updates, your VMs also got re-deployed and there might not be enough size currently available in the selected region or zone, to handle this issue you can do either of the processes
- Alternative VM sizes for the same zone and region: Standard_A2_v2, Standard_A2m_v2, or Standard_D2a_v4
- Alternative zones for the same VM size and region: Zone 1 and 3
For more information, please refer the below document
Troubleshooting Azure VM allocation failures - Virtual Machines | Microsoft Learn
Hope this helps!