Hello Vishnu Tupe,
Thank you for the confirmation. I will post this answer as a solution, so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others
I'll repost your solution in case you'd like to accept the answer
Issue:
Unable to connect to Databricks to Azure Synapse serverless SQL pool/Lake databases
Error:
Operation CREATE EXTERNAL DATA SOURCE is not allowed for a replicated database.
Solution:
Acess to Lake Database directly from the Databricks is not possible.
Lake databases doesn't support creating external data source as they are replicated database.
This is only supported for serverless SQL db.
Please remember to "Accept Answer" if any answer/reply helped, so that others in the community facing similar issues can easily find the solution.