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Error: Cannot create a feature class in the selected feature dataset

Error Message

When attempting to create a new feature class within an existing feature dataset using ArcCatalog, you may receive the following error message:

Cannot create a feature class in the selected feature dataset because the feature dataset is in use by another application/user.
Lock request conflicts with an established lock [layer].

Cause

This error occurs when a layer from the feature dataset is being accessed in ArcMap at the same time a new feature class is being created inside the feature dataset using ArcCatalog.

Solution or Workaround

  1. Remove all layers from ArcMap that are part of the feature dataset.
  2. Create the new feature class in ArcCatalog.
    [O] Creating a new feature class in ArcCatalog