Create Development Environment in Power Platform Admin Center

From PPAC, create a new environment. You will need role Global Administrator, Power Platform Administrator or Dynamics 365 Administrator to create a new environment. Select "none" for environment group and add a Dataverse data store. Click next.

Select a security group and enable Dynamics 365 apps but do not select any to install. Click save.

This will create an environment. After a short time, you should be able to view the environment page.

Next, click on Dynamics 365 Apps under Resources. Click Install App, fine "Dynamics 365 Finance and Operations Platform Tools". Any version will work - select and click next.

Check I agree then click install.

Once that complete, click Install App then select "Dynamics 365 Finance and Operations Provisioning App. Any version will work - click next.

You'll get a pop-up that this will take you to a new page. Click ok.

On this form, you can select if you want this environment to have dev tools. If you select yes, this will create the F&O infrastructure as a UDE - Unified Developer Environment. If you select no, this will create the environment as a USE - Unified Sandbox Environment. Also indicate if you'd like Contoso data and what specific version you'd like from the the available supported versions. Accept terms of service then click Install.

After this, the infrastructure for F&O will start to spin up and attach to the PPAC environment. After 2 hours, maybe 3, your environment page in PPAC will look like this to show that the F&O infra is available.