Unable to Groupify already created sharepoint site

VS 2022
Azure Function v4
.Net 8.0
PnP.Framework" Version="1.14.0"

Using Sharepoint username and secure password to do the authentication.
AuthenticationManager auth = new AuthenticationManager(SPAdminUserName, securePassword);

creating site collection using TeamNoGroupSiteCollectionCreationInformation and calling PnP.Framework.Sites.SiteCollection.Create method.
Next, we are trying to groupify the same site collection as below.

var groupifyprjsite = new TeamSiteCollectionGroupifyInformation
{
    Alias = aliasName,
    DisplayName = siterequestmessage.TeamOrSiteName,
    IsPublic = false,
    KeepOldHomePage = true,
    Description = siterequestmessage.SiteDescription,
    Owners = receivedSiteOwners,
    SiteAlias = aliasName
};
tenant.GroupifySite(siterequestmessage.SiteUrl, groupifyprjsite);    

when try to groupify site using GroupifySite , it throws exception as below:
{"An error occurred while processing this request."}
"System.Data.Services.Client.DataServiceRequestException"

We have tried using other method(CreateGroupForSite) on Tenant class as well which throws the same exception.
Please advice.
Thank you,

Start by reproducing the call in the issue with TeamNoGroupSiteCollectionCreationInformation, Tenant.GroupifySite, and Tenant.CreateGroupForSite using the stated VS 2022, Azure Functions v4, .NET 8.0, and PnP.Framework 1.14.0 setup. Inspect the resulting DataServiceRequestException and determine whether the groupification request is supported for this site state; done means identifying a confirmed cause and supported resolution or documenting the limitation.