Question: create a new workspace and setup SCIM for this workspace

[snowch]

I'm assuming this step is not possible to do with Azure Databricks Terraform?

As a temporary measure in Azure, in order to have all groups and users synchronized to your Databricks account, you will first need to create a new workspace and setup SCIM for this workspace. See the instructions for setting up SCIM here (https://docs.microsoft.com/en-us/azure/databricks/administration-guide/users-groups/scim/).