Following error occurs when database which is attempted to be created is smaller than 512KB. It is must that all the databases are larger than 512KB. It will also follow with another error 1802, which is due to previous error 5174.
Following code will create the error discussed in this post.
CREATE DATABASE Tests
( NAME = 'Tests',
FILENAME = 'c:\tests.mdf',
SIZE = 12KB )
Msg 5174, Level 16, State 1, Line 1
Each file size must be greater than or equal to 512 KB.
Msg 1802, Level 16, State 1, Line 1
CREATE DATABASE failed. Some file names listed could not be created. Check related errors.
Create database which is larger than 512KB. It is as well important that this database is larger than your model database, which we will see in future posts. If database is smaller than model database it will throw error which I have described here : SQL SERVER – FIX : ERROR Msg 1803 The CREATE DATABASE statement failed. The primary file must be at least 2 MB to accommodate a copy of the model database
Reference : Pinal Dave (https://blog.sqlauthority.com)