Can't create an auth user even from the dashboard

I have a freshly created project in Supabase.

I'm not able to create an authenticated user both programmatically and through the dashboard.

I'm getting the "Database error creating new user" error in both environments.

I'm attaching the screenshot of the error.

Can't find any information about this error on the internet. Is this something that is expected or it's a bug in Supabase?

Best,
Dimi