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Inside our SharePoint admin center >> Settings >> i define the following settings for site creation (mainly to allow end users to create classic team sites), as follow:-

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But when users try to create new sites (from their sharepoint home page), they will get this error:-

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so can anyone advice on this please? Thanks

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This issue occurs because the user who is trying to create the site doesn't have Create Subsites permissions for the site collection where he or she is trying to create the site. You must provide Create Subsites permissions to the users.

Refer to: https://support.office.com/en-us/article/-you-are-not-allowed-to-create-team-sites-error-message-when-you-click-new-site-on-the-sharepoint-online-followed-sites-page-7814e132-1a9f-4f3a-a1b1-5f7850a0a7c8

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  • thanks for the info,, but i do not want them to create sub-sites, i want them to create site collections, as per my settings,, is this correct, or i am missing something? – SharePoint TestDev Dec 6 at 10:52
  • Check if the user is a SharePoint Administrator in the Microsoft 365 admin center. – LZ_MSFT Dec 7 at 1:21

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