Thanks so much for your quick response Adrian.
I tried it, I'm able to create the new profile now. Will you please let me know what was the issue? looks like it's related with some permission. But I was able to create profile without any problem.
The issue occurs sometimes when a users profile is trying to be updated with new permissions, but is taking longer than expected. There's not much you can do unfortunately, but if you contact one of us we can force the profile to update.