The server-side publishing tool determines if the data in the service needs to reside in an enterprise geodatabase. This is the case when publishing feature services or transaction-enabled WFS (WFS-T) services. This error occurs when there is an issue with the registered ArcGIS Server Managed Database.
This server system tool is invoked by the publishing client (for example, ArcGIS Desktop) when you create a service.
Verify that the server has a server-only enterprise geodatabase correctly configured. If the service type you want to publish requires an enterprise geodatabase, you must first create an enterprise geodatabase on the server and register it as an ArcGIS Server Managed Database.
Learn more about copying data to the server automatically when publishing