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As it turns out, the issue was caused by a payment method processing issue. I had an issue with main card of the root account and even after fixing it I was unable to proceed.
After checking some services in the child accounts (audit and log archive), I received an activation screen message.
After contacting AWS Account activate support, they recommended making any change to the payment method, like a simple dot in the address line. That fixed the issue, I received activation notification for both log and audit accounts and was able to proceed with control tower configuration.
Same happen to me with provisioning Landing Zone via Control Tower in new Management Account. After 10 minutes got error:
AWS Control Tower failed to set up your landing zone completely: AWS Control Tower setup failed. Be sure your account is subscribed to the AWS EC2 service, then try again. If this error persists, contact AWS Support.
Control Tower able to provision two new accounts: Audit and LogArchive, I was able to assume role AWSControlTowerExecution to switch to them, when you go to EC2 you are getting another screen with missing info for activation.
When you click on Complete your registration you getting selection of the support plan only.
I tried to update billing address, didn't help. Opened Chat with AWS Support which is very useless, they give just this link to follow https://docs.aws.amazon.com/controltower/latest/userguide/troubleshooting.html And ask to update Support plan and submit technical support case.
After long discussions and screenshots with AWS Support (Not technical support as we don't have Support plan) they wrote me this:
"On reviewing I can see the payment method was invalid on the payer account, we've sent an autorization charges to your issuer and it is approved."
And now AWS Control Tower retry working fine.
So solution is check your billing info, if it's correct, open AWS Support case for Account Activation issue and ask them to re-validate payment method!
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I followed this procedure and it worked for me.