D365FO Cloud hosted environment deployment warning 95017

While deploying a Build & Test environment recently, I got following warning on the LCS deployment page event though the environment status showed deployed.

Warning tells me that my new D365FO environment is fine, however some automated setup are not completed in Azure DevOps.

Script [Run-CommandALMServiceInstallALM] failed execution against VM [XXXX]. Last Result: 0xA01604AF (An error occurred during the build environment setup process. Error details: ALM service model configuration failed. Configuration has 2 errors:
[1] BuildEnvironmentReadiness: PowerShell DSC resource MSFT_ScriptResource failed to execute Set-TargetResource functionality with error message: {“$id”:”1″,”innerException”:null,”message”:”The classic pipelines are disabled for this project / organization.”,”typeName”:”System.InvalidOperationException, mscorlib, Version=14.0.0.0, Culture=neutral, PublicKeyToken=b77a5c561934e089″,”typeKey”:”InvalidOperationException”,”errorCode”:0,”eventId”:0}
[2] AddTrustedTestCertificateToWifConfig: Could not reach desired state. [One or more dependencies may have failed.])

The first error made sense when we check the Azure DevOps project. I discovered that Disable creation of classic build pipelines was turned on.

During the deployment of a new Build environment, a build agent and a classic build pipeline are created/imported. So disabling creation of classic pipeline will surely result into error.