The correct command is gcloud deployment-manager deployments create my-gcp-ace-cluster --config cluster.yaml. This command uses the create action, which is the correct action for creating deployments in Google Cloud. The apply action is not supported by gcloud deployment-manager deployments. Additionally, specifying the type parameter directly in the command is unnecessary and incorrect, as all configuration should be defined within the cluster.yaml file. For more information, refer to the Google Cloud SDK documentation.