Yesterday, I discovered that Microsoft has change the way how to disable office 365 group creation from users. You may refer from this Microsoft Docs and it was last updated in September 2019. It seems that it requires a minimum license of Azure AD Premium Plan 1. You may find this plan in your M365 E3 license. Before this, this was the way on how to disable office 365 group creation from users.
Looking through this blog post, on the Azure portal image, and comparing the current one has changed a lot. Now the group settings in the current Azure portal looks like this;
As you can see above the Office 365 Groups settings, you can only control users from creating office 365 groups via Access Panel or Azure portals.
This is an Access Panel;