@saheba04 - Thanks for reaching Microsoft QnA platform . Please check below suggestions below and let us know if that helps.
Please confirm all template parameters and tags expecting complex types (such as RECORD or dictionaries) are properly formatted as JSON objects in the template rather than strings and If tags or any parameters are passed as strings but expected as structured data, this cast error can occur.
When assigning tags for Azure resources in CycleCloud templates, please ensure they are given as a map/dictionary structure, not as a plain string.
please review public IP settings in the node configuration. When assigning a static Public IP in a node template, the Public IP attribute must reference a valid resource ID string. However, other attributes related to tags or metadata attached to the public IP must be structured correctly.
Please verify the managed identity permissions again. Although you have mentioned managed identity has full access and manual cluster creation works, please ensure the same identities and role assignments are active and propagated when creating via template automation.
Also please check against known CycleCloud errors and managed identities troubleshooting docs for cluster creation failures due to authorization or casting issues here:
CycleCloud VM permissions with managed identity - https://xtls-v4.hkg1.meaqua.org/en-us/azure/cyclecloud/how-to/managed-identities?view=cyclecloud-8#cyclecloud-vm-permissions-with-managed-identity
Error Messages -https://xtls-v4.hkg1.meaqua.org/en-us/azure/cyclecloud/error-messages?view=cyclecloud-8