Hi @lofidev 

I resolved by requesting a policy exemption window to create scopes. The issue was due to a restrictive policy. Precisely what @lingareddy_Alva summarized earlier on this thread "

When Databricks tries to programmatically grant its SP Get/List on your vault during scope creation, Azure Policy intercepts that ARM call and blocks it because the vault modification is being initiated outside the private endpoint path.

The ball is in your Azure Policy admin's court. The Databricks control plane has no way to route its ARM calls through a private endpoint."