@nayan_wylde, @belforte thanks for the input. Would you know how this would apply with the azure provider? I tried using databricks_default_namespace_setting but it doesn't seem to work:

resource "azurerm_databricks_workspace" "dbw" {
  name                = "${local.org}-dbw-${local.env}"
  resource_group_name = azurerm_resource_group.dbx.name
  location            = azurerm_resource_group.dbx.location
  sku                 = "premium"
}

resource "databricks_default_namespace_setting" "ns" {
  provider = databricks.workspace
  namespace {
    value = "main.default"
  }

  depends_on = [azurerm_databricks_workspace.dbw]
}

To me it seems like that the provisioning is failed before terraform reaches the default namespace settings. The accounts console shows that the UC has been properly been assigned to the failed workspace.