NetWorker: Azure VM Snapshot Restore "azureCreateVM: error while creating nic"

NetWorker is configured to perform Azure VM Snapshot Protection.
An Azure VM snapshot restore fails with the following error in the nsrazure_recover log:

Linux: /nsr/logs/adhoc/nsrazure_recover/jobid.log
Windows (Default): C:\Program Files\EMC NetWorker\nsr\logs\adhoc\nsrazure_recover\jobid.log

Using 'VNET-NAME' vnet from resource group 'RESOURCE-GROUP-NAME'.
Target VM 'RESOURCE-GROUP-NAME:VM-NAME-TESTRESTORE' does not exist and will be recreated.
Restoring OS disk 'VM-NAME_OsDisk_1'.
Using 'STORAGE-ACCOUNT-NAME' storage account from resource group 'RESOURCE-GROUP-NAME'.
Recovered disk from ssid 'SSID' to resource group 'RESOURCE-GROUP-NAME', storage account 'STORAGE-ACCOUNT-NAME'
Recreating the VM 'VM-NAME-TESTRESTORE' in resource group 'RESOURCE-GROUP-NAME'.
208119:nsrazure_recover: Error from url 'https://management.azure.com/subscriptions/SUBSCRIPTION-ID/resourceGroups/RESOURCE-GROUP-NAME/providers/Microsoft.Network/networkInterfaces/RESOURCE-GROUP-NAME_VM-NAME-TESTRESTORE_nic?api-version=2023-02-01': Response Code: 400 Response Data: {"error":{"code":"SubnetIsFull","message":"Subnet /subscriptions/SUBSCRIPTION-ID/resourceGroups/RESOURCE-GROUP-NAME/providers/Microsoft.Network/virtualNetworks/VNET-NAME/subnets/SUBNET-NAME with address prefix 10.x.x.x/xx does not have enough capacity for 1 IP addresses.","details":[]}}
207899:nsrazure_recover: azureCreateVM: error while creating nic
207984:nsrazure_recover: Creating VM 'RESOURCE-GROUP-NAME:VM-NAME-TESTRESTORE' failed.

During the Azure VM restore, an Azure Virtual Network (VNET) and Subnet are specified.

The Azure Subnet specified during the restore does not have any free IP addresses to be used on the recovered VM.
  

There are two options:

• If the VNET and subnet specified must be used, the Azure Administrator must add or free up IP addresses in the Azure subnet.
• The NetWorker backup administrator can specify a different Azure subnet within the same VNET that has available IP addresses. Alternatively, if the VNET only contains one subnet, identify a VNET and subnet in the target Azure resource group that has available IPs.