@Akancha Sinha - Thanks for the question and using MS Q&A platform.
This is an known issue when you try to modify any associated resources with the Managed resource group.
What is Managed Resource Group?
This resource group holds all the resources that are required by the managed application. For example, this resource group contains the virtual machines, storage accounts, and virtual networks for the solution. The customer has limited access to this resource group because the customer doesn't manage the individual resources for the managed application.
Is it possible to modify or delete the Managed Resource Group?
When we create a Azure Databricks workspace, by design it will automatically create Databricks Managed resource Group. The managed resource group must exist as this is where your cluster(s) will be created. To ensure that nothing breaks them, they are placed in a separate resource group (managed resource group) that has a super lock on it so you cannot modify anything in it.
This deny assignment is preventing you from accessing the underlying resources.
For more details refer to below links:
Azure Policy - Deny assignments: https://docs.microsoft.com/en-us/azure/role-based-access-control/deny-assignments
SO thread addressing similar issue: https://stackoverflow.com/questions/73064767/how-to-override-deny-assignment-so-that-i-can-access-the-databricks-managed-stor
Note: Trying to create event hub for structured streaming in azure databricks doesn't require any modification in the resources in databricks managed resources.
The below articles explains how to use streaming with Azure Event Hubs & Databricks:
Structured Streaming with Azure Event Hubs and Azure Databricks clusters
Stream processing with Azure Databricks
Stream data from Event hub to Databricks.
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