Error message: "The primary file must be at least X MB to accommodate a copy of the model database" (1024 in this example, it depends on the environment setup)
When DB is created it uses the Model DB as template, the model DB is a built in system database in SQL.
In our ControlUp On-Premises data base creation script, we use:
DECLARE @dbDataFileSize VARCHAR(10) = 50
Please right click the Model DB and go to properties -> Files and check the initial size (MB)
Then edit the SQL script the On-Premises wizard created, Line 30, edit the value and change it from 50, in this example as you see the Initial size is 128MB, so in the script change it to 129MB, and that will resolve the issue.