I noticed this error in previous e2e-azure tests:
logger.go:146: 2024-06-05T15:38:14.058Z INFO Successfully created resource group {"name": "example-xwd7d-"}
 
which causes an issue when you go to create a subnet:

{"level":"info","ts":"2024-06-05T15:38:23Z","msg":"Creating new subnet for vnet creation"}

hypershift_framework.go:275: failed to create cluster, tearing down: failed to create infra: failed to create vnet: PUT https://management.azure.com/subscriptions/5f99720c-6823-4792-8a28-69efb0719eea/resourceGroups/example-xwd7d-/providers/Microsoft.Network/virtualNetworks/example-xwd7d-
--------------------------------------------------------------------------------
RESPONSE 400: 400 Bad Request
ERROR CODE: InvalidResourceName
--------------------------------------------------------------------------------
{
"error":

{ "code": "InvalidResourceName", "message": "Resource name example-xwd7d- is invalid. The name can be up to 80 characters long. It must begin with a word character, and it must end with a word character or with '_'. The name may contain word characters or '.', '-', '_'.", "details": [] }

}
-------

 
Example - failure here.