So earlier this week, something happened in SharePoint online that made users get an error when they tried to create a site from a site template. Even if they have created sites before with no issues, now they have error when they try to create a site. The error that pops up looks like this
After visiting Answers.microsoft.com, I noticed that a few others are posting the same thing. All have the same story how the site templates use to work, and now they don’t. Soon after posting, Microsoft released a Service Incident and it started showing up in the Service Health Dashboard. The issue has been fixed so far on the Microsoft side, but I am still seeing some of our customers at AppRiver still have the issue.
If you still have the issue, Microsoft has provided us a script to fix the error. Before you run the script, you need to download and install the SharePoint Online Client Components SDK (if you do not already have it. You can get that here
You can get the script and read how to fix this error here on the Office 365 Network
Also, Mahe posted on his blog another way to fix it. You can read that here