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After reading through multiple similar questions regarding this issue, I opened up a ticket with Microsoft to grant free agent for private project and within 2-3 days they approved the request. Now I can see following agent under 'Agent Pools' -

Agent Pools

Now when I run my pipeline, I still get the error "No hosted parallelism has been purchased or granted. To request a free parallelism grant, please fill out the following form https://aka.ms/azpipelines-parallelism-request"

What am I missing here?

Thanks in advance.