Create failed for Availability Group 'AGN'
I see you're combining Failover Cluster Instances (FCIs) and Database Availability Groups. That's fine, except that the installer won't allow you to set up an availability group on failover cluster instances that can be owned by the same servers, just like the error message says. In other words, the set of servers that can run HRITS\BAK can't overlap with the set of servers that can run HRITS\BAK1.

An availability group doesn't give you much additional fault tolerance in the scenario you described because if Node1 or NODE2 failed, both failover cluster instances would be running on the same server. 

To get around the error, you could reinstall the SQL Servers as standalone instances. Alternatively, if this design is what you really want, I believe the installer might work if you change the 'possible owner' setting for resources in each cluster group. This is possible with Powershell, for example:

Get-ClusterGroup -Name "SQL Server (BAK)"|Get-ClusterResource|Set-ClusterOwnerNode -Owners NODE2
Get-ClusterGroup -Name "SQL Server (BAK1)"|Get-ClusterResource|Set-ClusterOwnerNode -Owners node1


That said, this design might not make any sense for the aforementioned reasons unless it's just for a lab.