Microsoft has recently increased the compatibility level of Azure SQL to be on par with SQL Server 2016. ADAM is not yet compatible with this version of SQL Server. Due to this change, new ADAM databases can no longer be created on Azure SQL using the CreateDatabase command in the ADAM DatabaseManager command line tool.
A fix will be included in the forthcoming ADAM 5.6 Summer Release, with full SQL Server 2016 compatibility due later this year.
Should you need to install new ADAM 5.5.2 databases on Azure SQL, please contact support.
The ADAM Services team