I have had some cases, where users of Project Online, are experiencing issues with creating new projects and/or that “Project Sites” can’t be created anymore. The first issue happens if you have forced all projects to be created with a “Project Site”, and the second issue could easily be related.
This fix will work if you the following is true (maybe also in other scenarios):
1. Navigate to a Project Site that has already been created
2. Go to “Site Settings”
3. You are missing the “Save Site as Template” functionality
If the above is true, the issue is most likely connected to a specific “Site Collection Feature” that must be deactivated for the Project Online tenant.
Navigate to Site Collection Features, and look for “SharePoint Server Publishing Infrastructure”. If this is activated, disable it. Now try to create a project site and/or a new project with a site. If it still doesn’t work, create a new “Site Template” and re-associate with an EPT. Try again, and if still doesn’t work, let me know:-)
SharePoint doesn’t support creating a template from a site where publishing or community features were enabled. This is because the publishing feature creates site elements that are not supported as part of a template, and these elements remain even when the feature is disabled. This also includes templates that were created through SharePoint Designer. Note that although the “Save site as template” option may become available after you deactivate publishing features, it is still unsupported to create a template from a site that has ever had publishing features enabled.