Your data frame has clipping enabled, which is not supported for map services.
Solution
Remove (turn off) the Clip to shape option from your map's data frame properties.
More information
Most maps contain a rectangular map extent in which geographic information and features are displayed as map layers. In some maps, you can specify a clipping shape that is used as a template within which map graphics are displayed—for example, a state's boundary might be used to clip a map. However, map clipping is not supported for map services because clipping may significantly slow down map drawing performance.