Known issue with publishing extensions: “Your ability to create global personal access tokens (PATs) is restricted by your organization.”
Nov 9, 2021pazand

Summary
This post details a known issue where the 'Restrict creation of global PATs' policy in Azure DevOps prevents users from publishing extensions to the Visual Studio Marketplace via the CLI. It explains the symptom, cause, and provides workarounds: adding user accounts to an allowlist for the policy or disabling the policy altogether. It clarifies that a PAT is only needed for CLI publishing, not for the web portal.