Some Reddit users report that they have been having the same problem on PS4. You will have to wait for the upgrades to be completed at a later time. This includes restarting the game again, verifying game files, or restarting the router.
Since this is a problem from the side of the servers, there is nothing you can do on your end, unfortunately. The developers are currently making upgrades to the servers so you will have to wait for them to announce its success. There are too many nostalgic fans having cooperative gameplay that the capacity is now full and could not handle others.
The issue comes from the servers from Blizzard that could not handle the amount of players joining in. This issue is actually a server-related problem. There are currently workarounds for this since Blizzard has not made any official fixes yet. It is usually with this message: This character is already in a game on the server. Some players have encountered the Failed to Enter game issue recently when playing co-op with friends. Diablo 2 Resurrected This Game is No Longer Available to Join Issue Fix
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So here is how to fix the Diablo 2 Resurrected ‘doesn’t start’ and ‘failed to enter game’ issues until the developers find a permanent solution. There have been some who have experienced issues like the game “doesn’t start” and “failed to enter game” and unfortunately there is still no fix from Blizzard. Diablo 2 Resurrected just launched and already some players are having some problems with it.