Before creating an aks cluster, you need to ensure that you already have a container registry and resource group. Your chosen VM size’s vCPU count must also fit the remaining vCPUs for that family in the region.
Using --tier free only means you will use the cluster control plane management but you will still pay for the underlying infrastructure like storage and worker nodes.
az aks create \
--resource-group rg-aks-demo \
--location southindia \
--name aks-demo-cluster \
--node-count 1 \
--node-vm-size Standard_D2s_v4 \
--tier free \
--vm-set-type VirtualMachineScaleSets \
--load-balancer-sku standard \
--enable-managed-identity \
--network-plugin azure \
--no-ssh-key \
--attach-acr acrdemoregistry