Same problem for me, but only for TFS based. Git works. TC Version 9.0.1 (build 32116)
TFS Project: The following result in “Cannot create a project using the specified URL. The URL is not recognized.”
“https://xxx.visualstudio.com/DefaultCollection/Scrum%20Test%20TFS”
“https://xxx.visualstudio.com/DefaultCollection”
But for a git project added the same way it works.
“https://xxx.visualstudio.com/defaultcollection/_git/Scrum%20Test%20GIT”