Can’t create VM

Can’t create VM in sandbox environment as getting following error 

{"code":"InvalidTemplateDeployment","message":"The template deployment failed because of policy violation. Please see details for more information.","details":[{"code":"RequestDisallowedByPolicy","target":"AZ900","message":"Resource ‘AZ900’ was disallowed by policy. (Code: RequestDisallowedByPolicy)","additionalInfo":[{"type":"PolicyViolation","info":{"policyDefinitionDisplayName":"Deny hybrid use benefit","evaluationDetails":{"evaluatedExpressions":[{"result":"True","expressionKind":"Field","expression":"type","path":"type","expressionValue":"Microsoft.Compute/virtualMachines","targetValue":["Microsoft.Compute/virtualMachines","Microsoft.Compute/VirtualMachineScaleSets"],"operator":"In"},{"result":"True","expressionKind":"Field","expression":"Microsoft.Compute/licenseType","path":"properties.licenseType","expressionValue":"Windows_Server","targetValue":"Windows_Server","operator":"Equals"}]},"policyDefinitionId":"/providers/Microsoft.Management/managementGroups/3617ef9b-98b4-40d9-ba43-e1ed6709cf0d/providers/Microsoft.Authorization/policyDefinitions/d54bfe64-4643-4f5c-aa37-dc3fb9ccccc0","policyDefinitionName":"d54bfe64-4643-4f5c-aa37-dc3fb9ccccc0","policyDefinitionEffect":"deny","policyAssignmentId":"/providers/Microsoft.Management/managementGroups/3617ef9b-98b4-40d9-ba43-e1ed6709cf0d/providers/Microsoft.Authorization/policyAssignments/dab5ee61cc814d0cb7454a3a","policyAssignmentName":"dab5ee61cc814d0cb7454a3a","policyAssignmentDisplayName":"Deny hybrid use benefit","policyAssignmentScope":"/providers/Microsoft.Management/managementGroups/3617ef9b-98b4-40d9-ba43-e1ed6709cf0d"}}],"policyDetails":[{"isInitiative":false,"assignmentId":"/providers/Microsoft.Management/managementGroups/3617ef9b-98b4-40d9-ba43-e1ed6709cf0d/providers/Microsoft.Authorization/policyAssignments/dab5ee61cc814d0cb7454a3a","assignmentName":"Deny hybrid use benefit","nonComplianceMessage":null,"viewDetailsUri":"https://portal.azure.com#blade/Microsoft_Azure_Policy/EditAssignmentBladeV2/assignmentId/%2Fproviders%2FMicrosoft.Management%2FmanagementGroups%2F3617ef9b-98b4-40d9-ba43-e1ed6709cf0d%2Fproviders%2FMicrosoft.Authorization%2FpolicyAssignments%2Fdab5ee61cc814d0cb7454a3a"}]}]}