Microsoft 365 Alert – Service Degradation – Microsoft 365 suite – Users can’t create a SQL database on the Microsoft Fabric portal if a specific setting is disabled – RESOLVED

Announcements Sourav Nandi

09/05/2025 09:20:00 AM

NHSmail Reference: INC46525006

Microsoft Reference: MO1070147

Issue Status: RESOLVED

Issue Description: Users can’t create a SQL database on the Microsoft Fabric portal if a specific setting is disabled.

More Info: Specifically, users can’t create a SQL database on the Microsoft Fabric portal if the “Users can create Fabric items” setting is disabled at an organizational level.

While Microsoft work on mitigation, tenant admins can enable the “Users can create Fabric items” setting at the organizational level. Additionally, users can attempt to provision a SQL database via public API, which will bypass this check on the user experience (UX), and as long as the tenant and capacity settings are configured correctly then provisioning of both the SQL database and the child data warehouse will succeed. For more information, they’ve provided documentation on how to create Fabric items via public API: https://learn.microsoft.com/en-us/rest/api/fabric/core/items/create-item?tabs=HTTP.

Final Update: 13/05/2025 08:30:00 AM – Microsoft have developed and deployed the fix to revert the change and confirmed that impact is no longer occurring.

Scope of impact: Your organization is affected by this event, and all users can’t create a SQL database on the Microsoft Fabric portal if a specific setting is disabled.

Root cause: A recent change included a check for tenant-level settings during the creation of SQL databases but not capacity-level settings, resulting in impact.

Next steps: Microsoft are reviewing their change procedures to help prevent similar problems in the future.