As far as I can tell, the maximum database size needs to be set to 32 GB. As per https://learn.microsoft.com/en-us/azure/azure-sql/database/free-offer?view=azuresql
- Maximum of 4 vCores and the maximum database size of 32 GB.
You might want to raise a billing ticket to clarify this
If the above response helps answer your question, remember to "Accept Answer" so that others in the community facing similar issues can easily find the solution. Your contribution is highly appreciated.
hth
Marcin