Storage Account provision fails mid-creation

I am having an issue provisioning a storage account for hosting a static website.
This script has worked in the past but has recently been giving me trouble. I was in the middle of activating “infrastructure_encryption_enabled” for the storage account, requiring it be destroyed and recreated.

When I run my TF script, this is the output I receive when applying:

azurerm_storage_account.web-storage: Destroying… [id=/subscriptions/xxx/resourceGroups/xxx/providers/Microsoft.Storage/storageAccounts/staticWebStorage]
azurerm_storage_account.web-storage: Destruction complete after 5s
azurerm_storage_account.web-storage: Creating…
azurerm_storage_account.web-storage: Still creating… [10s elapsed]
azurerm_storage_account.web-storage: Still creating… [20s elapsed]

│ Error: reading static website for AzureRM Storage Account “staticWebStorage”: accounts.Client#GetServiceProperties: Failure responding to request: StatusCode=404
– Original Error: autorest/azure: Service returned an error. Status=404 Code=“ResourceNotFound” Message=“The specified resource does not exist.\nRequestId:0cfb8771-e01e-0029-6199-8d724b000000\nTime:2023-05-23T17:12:27.0665511Z”

The error claims the Storage Account does not exist. When I check the portal, the storage account does exist, and I can access everything in it. Despite the resource existing, Terraform considers the storage account Tainted and will always want to destroy and recreate it.

Here is my TF script:

resource "azurerm_storage_account" "web-storage" {
  name                                    = "staticWebStorage"
  resource_group_name      = var.resource_group_name
  location                                = var.location

  allow_nested_items_to_be_public        = false
  default_to_oauth_authentication         = false
  infrastructure_encryption_enabled   = true 

  account_kind                      = "StorageV2"
  account_tier                        = "Standard"
  account_replication_type  = "LRS"

  static_website {
    index_document = "index.html"
    error_404_document = "index.html"
  network_rules {
    default_action = "Allow"
    bypass = ["AzureServices"]
    ip_rules = ["x.x.0.0/16"] #My VPN IP range
  blob_properties {
    delete_retention_policy {
      days = 14
    container_delete_retention_policy {
      days = 7

Here is what I have tried so far…

  1. Enabling and disabling “infrastructure_encryption_enabled”
  2. Enabling and disabling “static_website”
  3. Enabling and disabling “network_rules” “defaul_action” to ‘allow’ & ‘deny’
  4. Enabling and disabling “blob_properties”
  5. A requirement of this project is that all blob containers must be set to “Private” access level, so I can’t change it to “Public”
  6. Manually deleting the Storage account and removing it from the Terraform state
  7. Manually creating the storage account and importing it to the TF state

If anyone has seen a similar issue, I would appreciate the insight.
Please & Thank You

Did you find any solution for it as i am also having the same issue?