Need some advice from the game creators

Game creators probably won’t answer you, it’s evident that they don’t even know their own game or care, they are only interested in new ways to get your money. But I could give you my humble opinion. Don’t stress about the regions just upgrade utilities over time and eventually they’ll get back to where they were, the populations don’t count towards taxes, the capital is the most important.  omega buildings and utilities are your best bet (smallest footprint for more output)

Unless anything changed recently, the happiness of  regional population affects taxes in your capital. When happiness in regions drops, taxes in the capital drop too. 

It's great to see 100% satisfaction back in the capital city.  But don't ignore your regions: while they don't pay takes directly,  their satisfaction level reflects on your overall tax rate! So, how much do you value your regionale builbings?

Here my strategy for handling the service 2.0 mess:

1. dare to demolish: Before the rollout I deliberately demolished some fully upgraded building in my regions. Why? To instantly loswerden service demand. You can always rebuild them step-by-step once your capacity allows it.
2. know your capacities:  Check you service buildings. A fully upgraded house needs 30 to 50 units depending on the type.  Do you math: How many builbings can your Power plant actually support?
3. the "regional tax": don't forgett that in regions,  specify services (like Power in Frosty Fjords) Requieres 1 extra unit per building compared to the capital. 
4. Radius Efficiency: Make sure that Fire, Police,  Health, and regional services do not overlap.  Double-couvering residential areas is a waste of resources that you'll need elsewhere.

Bottom line: Don't treat regions as an afterthought.  Plan them as efficiently as your capital to Keeper your tax rate maxed out

Thank you for thereply and advice.

Thank you for your reply and advice.

I have the exact opposite problem.  Was able to fully upgrade my 3 regions at an enormous cost ( but had $20 million so could handle it) but can’t do anything about the Capital.  It immediately pixelates or turns black, green, or purple and freezes the game.  For some unknown reason, happiness is remaining at 96% so far so I’m just playing along.

Could be that you have abandoned houses in your city which have to be repaired. You can  check it if you click on the icon for New buildings. This opend  window shows it. I had some time ago the same case.

Lol!  Whenever I click on an icon, the game pixelates or goes black, green, and purple. I do have a couple of abandoned buildings but can’t do anything about them nor anything about the buildings on fire. Thanks for your suggestion.