This issue has been resolved and customers shouldn't see the Visual Studio (VS) errors described below in relation to the issue we worked on over the weekend. The root cause was a failure in the backend API that older versions of VS client call into to iterate Application Insights resources.
Sorry for any headaches this caused.
Issue: In some version of Visual Studio users will encounter an error, like the following, when adding Application Insights to their project:
Could not add Application Insights to project.
Could not create Application Insights Resources 'MyAppName':
The Application Insights service did not accept the request to create the specified resource (500).
Please try again later.
This can happen if communication with the Application Insights portal failed, or if there is some problem with your account.
Impact: This does not impact project creation, it only affect the addition of Application Insights.
Work Arounds: To avoid this error, you could either:
Upgrade your Visual Studio client bits to Visual
Studio 2015 Update-1 or later
Uncheck the checkbox in File.NewProject to add
Application Insights during project creation
Add Application Insights to an existing resource