Thank you for posting a detailed question here.
Based on the error above I think the deletion blocked in backend and a support request will be required here to remove the subnet delegation and to delete the Virtual Network.
If you have a support plan you may file a support ticket, else could you please send an email to xxxxxxx@microsoft.com with the below details so that I can enable a one-time free support ticket for you in this case.
Subject : Attn Chaitanya
Thread URL: Link to this thread.
Subscription ID
Please let me know once you have done the same.
EDIT:
Another likely cause of this issue might be "When you remove the last gateway associated to a gateway/subnet, it might take up to 48-72 hours before you can delete the subnet or VNet."
This is documented here
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