Without asking any questions, it sounds straight away you may have an SCP defined at an Org level preventing either the creation of Lambda and/or denying creating of anything in the region you are using.
There are a lot of other questions about this issue including this one - the short version: Please contact the support team.
I have subscribed for tech support, since this is my individual account.
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Thank you for the response but my account is new and I did not add any SCPs. I checked and SCPs are disabled.