Comprehensive and Detailed In-Depth Step-by-Step Explanation:Credit-based flexible licensing is a licensing model introduced by Palo Alto Networks to simplify the deployment and management of software firewalls, including VM-Series, CN-Series, and Cloud NGFW. The Palo Alto Networks Systems Engineer Professional - Software Firewall documentation outlines the benefits of this model, particularly its flexibility and scalability across different firewall types in cloud and virtualized environments.

Creating Cloud NGFWs (Option D): Credit-based flexible licensing allows customers to use a pool of NGFW credits to deploy and manage Cloud NGFWs in public cloud environments like AWS and Azure. This licensing model provides the flexibility to allocate credits dynamically to create Cloud NGFW instances as needed, without requiring separate licenses for each instance. It simplifies procurement, reduces administrative overhead, and ensures scalability, making it a key benefit for customers adopting cloud-native security solutions.

Options A, B, and C are incorrect. Permanently setting the capabilities of software firewalls (Option A) contradicts the flexible nature of credit-based licensing, which is designed for dynamic allocation. Adding Cloud-Delivered Security Services (CDSS) to CN-Series firewalls (Option B) is not a direct benefit of flexible licensing; CDSS subscriptions are separate and can be applied independently of the licensing model. Adding subscriptions to PA-Series firewalls (Option C) is irrelevant, as PA-Series firewalls are physical appliances with fixed licensing, not covered under the credit-based flexible licensing model for software firewalls.

References: Palo Alto Networks Systems Engineer Professional - Software Firewall, Section: Flexible Licensing Overview, NGFW Credits Documentation, Cloud NGFW Deployment Guide.