This week has started with some problems with the Workflows on Project Online.
When you try to create a new project the queue process is canceled and if you check the queue you will see the Job State with the status = “Failed But Not Blocking Correlation“.
If you check the details you will see
In 2013 I had a similar error in Project Server 2013 and was a problem with the Workflow Manager and to solve I had to run a PowerShell to registered correctly the Workflow Manager. (Register-SPWorkflowService).
But now using Project Online we do not have access to the logs and we need to wait for Microsoft fix it.
So you are trying to create a new project and you have received this error, wait until the end of the day. I hope Microsoft will fix it as soon as possible.
I will update the post when I receive any news.
Today 07/07/2017 is working perfectly. If you had the same issue probably your workflow is now working, just try again =)
See you !!!