Unable to create a capabilityHost

[BALAGA-GAYATRI]

Hello, I'm trying to run azd provision and able to create the necessary resources mentioned in the .bicep files except the capabilityHosts as mentioned in the Hub and project. I'm getting the below error -

(UserError) Resource {dataName} not found
Code: UserError
Message: Resource {dataName} not found

I've tried creating using az cli and got the same error as above

az ml capability-host create --name my-host-name --resource-group my-resource-group --workspace-name my-workspace

Also, I'm doing this in eastus region where this feature is supported

I'm trying to understand -

1. Since this feature is in preview, do I need to do anything to register this particular resource to enable it in my subscription?
2. What exactly is CapabilityHost? I found one documentation - https://learn.microsoft.com/en-us/cli/azure/ml/capability-host which says it enables the Hub and Project to seamlessly interact with the Azure AI Agent Service.
3. I have created an agent locally using this template and changed the function app to serve my purpose. I'm able to run the function app locally using azurite and getting the decent results. Is CapabilityHost a must have for getting my agent in production or can work it out without this also?