Azure Application Insights - Location Issue
I was looking for a good source to back my story, but couldn't find the URL anymore :( . As far as I know the Application Insights services are only available from the Central US location. Which can be causing the error, because you are trying to set up an Insights component in the East US region.
As you can see, the location is locked and therefore it is not possible to choose for East US.
You can keep track of Azure Application Insights service updates at this page. Next to that you can filter the updates only to see service updates about regions and datacenters.
I hope this helps a little.
Yesterday Microsoft announced general availability in additional regions for Application Insights.
Also, you might run into an error when deploying with your current ARM template!
Application Insights: General availability in additional regions
In my case, was able to resolve the issue by updating Azure within Visual Studio
Tools => Extensions And Updates => Updates => Azure*