[Bug]: Change Event Streaming cannot create Event Stream Group after successful sp_enable_event_stream

[dbugeja78]

Container image tag

sqldbpreview-dpgaeqhmgphzd4bk.azurecr.io/azure-sql/db-dev:latest

Host OS

Windows 11 (x86_64)

Container runtime and version

Docker version 29.7.2, build a7dcaa6

What happened

I am unable to create a Change Event Streaming (CES) Event Stream Group after successfully enabling CES on a newly created database.
The database appears enabled according to sys.databases (just on master), but sp_create_event_stream_group response states that CES
is not enabled.

Steps to reproduce

Owner: Dione Bugeja
Version: 1.0 (Initial version, 2026-08-13 11:55am utc)

Title: Change Event Streaming cannot create Event Stream Group after successful sp_enable_event_stream

Details:
Repro Steps:
Step 1 - Use master
Use master
Returns Ok
Step 2 - Create Database
CREATE DATABASE [datateamdb_new2]
(
EDITION = 'Data Team Framework',
SERVICE_OBJECTIVE='',
MAXSIZE = 1 GB
)

			GO
		Returns Ok
	Step 3 - Set Database to multi user
		ALTER DATABASE datateamdb_new2
			SET MULTI_USER;
			GO
		Returns Ok
	Step 3 - Shift on custom database 
		Use datateamdb_new2
		Returns Ok
	Step 4 - Creating a master key 
		CREATE MASTER KEY ENCRYPTION BY PASSWORD = 'd1i0!VGB'
		Returns Ok
	Step 5 - Creating the scoped credentials
		CREATE DATABASE SCOPED CREDENTIAL DioneSampleScopedCredential
	    WITH IDENTITY = 'Managed Identity'
	    Returns Ok
	Step 6 - Enable CES
		EXEC sys.sp_enable_event_stream
		Returns Ok
	Step 7 - Create and assign group
		EXEC sys.sp_create_event_stream_group
		    @stream_group_name =      N'DioneEventStreamGroupName',
		    @destination_type =       N'AzureEventHubsApacheKafka',
		    @destination_location =   N'datawarehousepoc.servicebus.windows.net:9093/eventhubns-32', 
		    @destination_credential = DioneSampleScopedCredential,
		    @max_message_size_kb =    1024,
		    @partition_key_scheme =   None
		;
		Return Error001.

Error001:  
	Msg 23626, Level 16, State 2, Procedure sys.sp_create_event_stream_group, Line 469 [Batch Start Line 20]
	An error occurred. The error/state returned was 23636/1: 'Change Event Streaming is not enabled on database 'datateamdb_new2'.'.
	Completion time: 2026-08-13T13:46:49.1368488+02:00

Troubleshooting:
	[1]
	Use master; SELECT * FROM sys.databases WHERE is_event_stream_enabled = 1; 
	Returns datateamdb_new2
	[2]
	Use datateamdb_new2; SELECT * FROM sys.databases WHERE is_event_stream_enabled = 1; 
	Returns nothing

Tester Outcome:
	It seems the system view 'sys.databases' beneath database [datateamdb_new2] is not actually reporting on table 'sys.databases' likewise to master, hence
	might be reason Error001 is thrown.

Additional context

Perform another run of steps on a different database, the same. Screenshot of the actual steps attached.

p.s. while opening the issues page, I'm getting 404.

Confirmation

• I scanned open issues and Known limitations for a duplicate.