Creating a SQL Azure Enterprise Geodatabase fails with Error: Error_CREATE DATABASE statement not allowed within multi-statement transaction

Error Message

Creating a SQL Azure Enterprise Geodatabase from ArcGIS Pro using the Create Enterprise Geodatabase geoprocessing tool fails with an error:

CREATE DATABASE statement not allowed within multi-statement transaction.

Cause

The CREATE DATABASE statement must run in auto-commit mode (the default transaction management mode) and is not allowed in an explicit or implicit transaction.

For SQL Azure, the database and geodatabase administrator login should first be created using the SQL Azure Portal/SQL Server Management Studio before running the Create Enterprise Geodatabase tool from ArcGIS Pro.

Solution or Workaround

1. Create the database and geodatabase admin login directly in the SQL Azure Portal/SQL Server Management Studio.
2. Once the database and geodatabase admin login is created, run the Create Enterprise Geodatabase geoprocessing tool, shown below,  and specify the name of the newly created database in SQL Azure.

The tool grants the geodatabase administrator the privileges required to create a geodatabase and then creates the geodatabase repository in the SQL Azure database.

Detailed steps for creating an Enterprise Geodatabase in SQL Azure can be found in this Esri Community post: Enterprise Geodatabase in Azure SQL database