@JPan that is really odd. From first glance, it does look like a bug from your video. Interestingly, your error message (from your logs) says it's to do with your SQL Warehouse Version. It says your specific Warehouse Version isn't compatible, I guess. How can that be if you're using Serverless? I thought, and correct me if I'm wrong, we don't need to manage versions if we're using Serverless.
Are you sure you selected Serverless compute ☺️?
I tried replicating your issue. Unfortunately, I didn't encounter the same issue. I'm using the Free Edition of Databricks:

Would love to get to the bottom of this though @JPan .
All the best,
BS