You should be able to workaround this and still create the application by adding something unique to the app name, i.e. if the app name is: Safety, add initials to the app name: Safety MG (you can also add the date if you wish to as well to make it even more unique: Safety MG 11-04-24
You may also need to Repair Machine Learning Settings and System Properties under the Lab Management Application Module on the left hand side.
If all else fails and even after terminating and request a new lab instance, please create a support case here