I've create Team Project and with it also Team Services Account using Azure portal.
I don't know how it happened, but not Team Project resource is in different location than Team Services Account resource. I can see it in Azure Portal -> All Resources.
1. Which location is actually used? I want optimal connectivity for the team portal and repositories.
2. Can I move team project to different location? I wanted to delete/recreate it, but I don't see delete option for team project in the azure portal. I can only delete entire resource group.
You can delete the project from All resources in Azure Portal:
And then sign in the created VSTS account, click settings button and then navigate to "Overview" panel to delete the project in VSTS: