Production supply area &1 is assigned to WM managed warehouse &2

What causes this issue?

You tried to create or change a control cycle using the production
supply area given in the error message.
This supply area is associated with a storage location that is assigned
to an WM-managed warehouse. This is not possible in a S/4HANA cloud
environment.

System Response

The creation or change of a control cycle associated with these kind of
storage locations is not supported.

How to fix this error?

You cannot continue with the current supply area.
You can either a) choose a different supply area or b) abort the
transaction and check the assignment of the storage location to the
corresponding warehouse.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.