If you are installing BizTalk360 and having SQL server with Mount Points, you will receive this exception at the Create database step. This can occur, in spite of having all the permissions for the service account.
The error you will get in SQL when logged in as the service account and call CREATE DATABASE [BizTalk360] is:
CREATE DATABASE failed. Some file names listed could not be created. Check related errors.
This is because you are using SQL with Mount Points and are required to pass in the FILENAME parameter when using Mount Point.
However, if we call it this way instead, the database is created and we do not get any errors:
CREATE DATABASE [BizTalk360]
ON PRIMARY
( NAME = N'BizTalk360', FILENAME = N'D:\Data01\BizTalk360\BizTalk360.mdf' )
LOG ON
( NAME = N'BizTalk360_log', FILENAME = N'D:\Log01\BizTalk360\BizTalk360_log.ldf' )
The workaround is to create the BizTalk360 database prior to the installation and then run the installer which would ask to overwrite the database, and then continue the installation process with no errors.