Hello Manjunatha Munireddy,
Thank you for reaching out on the Microsoft Q&A.
The error you are seeing is not really about Custom Vision itself, but about permissions on the underlying Azure resources that Custom Vision uses. The message shows AuthorizationFailed, meaning your account or service principal does not have the right to access a storage encryption scope in the subscription and resource group mentioned.
First, make sure you are signed into the correct subscription and resource group. If you don’t recognize the subscription or resource group in the error, Custom Vision may be trying to use a resource you don’t have access to. In that case, try creating the project in your own subscription and explicitly select or create a new resource group instead of relying on the default.
Also, check your role assignments. To create a Custom Vision project, you need at least Contributor rights at the resource group level (Owner also works). If you’re using a service principal, confirm it has the same permissions assigned. Without these roles, the portal cannot create the backing storage accounts and encryption scopes required.
If everything looks correct but the error happens across multiple regions, it may be a temporary Microsoft service issue.
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Thank you!