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The Azure subscription conversion (Azure for Students → Pay-As-You-Go) and the Foundry Quota Tier (Free Tier → Tier 1) are two separate systems — upgrading the subscription doesn’t automatically move your quota from Free Tier to Tier 1, because eligibility is assessed separately based on factors like usage, payment history, and offer type. There’s also no self-service “force Tier 1” option — the upgrade is triggered on the backend, and users can only set the opt-out flag (NoAutoUpgrade).
The fastest practical fix is to submit a quota increase request (it works independently of the tier and usually unblocks deployment), and if that’s not enough, open a support case asking for a backend eligibility review for Tier 1. It’s also worth waiting several hours for the conversion to propagate and checking your actual TPM quota in the portal (ai.azure.com/resource/quota), since you may be looking at a reference table rather than your subscription’s effective allocation.