Hi @keloken ,
Thanks for using Microsoft Q&A !!
You may get this error when the user creating the workspace does not exist in the tenant ID and may cause initialization failure. You need to create or add the user in the correct tenant to prevent this issue. Once you complete this step, you need to assign the permissions to this account. The user needs to have access to the subscriptions attached into the tenant where your are trying to create the workspace.
Once the user has this access, the user should be able to manage all the resources based on the necessity, including the databricks workspace.
Please let me know in case you still have issues or any other questions.
Thanks
Saurabh