FYI... something new with SQL 2016. A new "feature" for setting a default database size broke certain functionality in Sage 100.
I was getting an error 42000 Modify File failed, when creating a copy company (or activating a module in a new company code).

Google pointed me to the solution, which involved changing the Model (system) database initial file sizes. I went with 8MB each (changed from the 1024 in the attached pic), and the error went away.