Unexpected error when deploying "RAG on PostgreSQL" template

Copied from:
https://github.com/microsoft/vscode-dev-azure/issues/14

Command line output

Executing task: azd init -t "https://github.com/Azure-Samples/rag-postgres-openai-python" -e "vscode-dev-d09683"

Initializing an app to run on Azure (azd init)

(✓) Done: Initialized git repository
(✓) Done: Downloading template code to: /home/chunan/rag-postgres-openai-python-e9e1

SUCCESS: New project initialized!
You can view the template code in your directory: /home/chunan/rag-postgres-openai-python-e9e1
Learn more about running 3rd party code on our DevHub: https://aka.ms/azd-third-party-code-notice

Terminal will be reused by tasks, press any key to close it.

Executing task: azd up

(✓) Done: Downloading Bicep
? Select an Azure Subscription to use: 116. StorageExplorer (5d17327f-ed05-4b65-bfd1-f498ac160d55)
? Select an Azure location to use: 46. (US) East US 2 (eastus2)
? Enter a value for the 'openAILocation' infrastructure parameter: 18. (US) East US 2 (eastus2)

Packaging services (azd package)

(✓) Done: Packaging service web

Provisioning Azure resources (azd provision)
Provisioning Azure resources can take some time.

Subscription: StorageExplorer (5d17327f-ed05-4b65-bfd1-f498ac160d55)
Location: East US 2

You can view detailed progress in the Azure Portal:
https://portal.azure.com/#view/HubsExtension/DeploymentDetailsBlade/~/overview/id/%2Fsubscriptions%2F5d17327f-ed05-4b65-bfd1-f498ac160d55%2Fproviders%2FMicrosoft.Resources%2Fdeployments%2Fvscode-dev-d09683-1730748005

(✓) Done: Resource group: vscode-dev-d09683-rg (13.839s)
(✓) Done: Azure OpenAI: vscode-dev-d09683-4lv5chlhez62a-openai (18.897s)
(✓) Done: Azure AI Services Model Deployment: vscode-dev-d09683-4lv5chlhez62a-openai/gpt-4o-mini (270ms)
(✓) Done: Azure AI Services Model Deployment: vscode-dev-d09683-4lv5chlhez62a-openai/text-embedding-ada-002 (579ms)
(✓) Done: Log Analytics workspace: vscode-dev-d09683-4lv5chlhez62a-loganalytics (25.283s)
(✓) Done: Application Insights: vscode-dev-d09683-4lv5chlhez62a-appinsights (1.378s)
(✓) Done: Portal dashboard: vscode-dev-d09683-4lv5chlhez62a-appinsights-dashboard (1.699s)
(✓) Done: Container Registry: vscodedevd096834lv5chlhez62aregistry (25.919s)
(✓) Done: Container Apps Environment: vscode-dev-d09683-4lv5chlhez62a-containerapps-env (34.841s)
(✓) Done: Azure Database for PostgreSQL flexible server: vscode-dev-d09683-4lv5chlhez62a-postgresql (4m4.816s)
| =| Creating/Updating resources
ERROR: error executing step command 'provision': deployment failed: error deploying infrastructure: deploying to subscription:

Deployment Error Details:
AadAuthOperationCannotBePerformedWhenServerIsNotAccessible: The server 'vscode-dev-d09683-4lv5chlhez62a-postgresql' is not in an accessible state to perform Azure AD Principal operation. Please make sure the server is accessible before executing Azure AD Principal operations.

TraceID: 00000000000000000000000000000000

The terminal process "/bin/bash '-c', 'azd up'" terminated with exit code: 1.
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