Grails: adjust Hibernate settings to prevent "org.hibernate.tool.schema.spi.CommandAcceptanceException: Error executing DDL via JDBC Statement"

Grails 3.3.2 project. GORM, Hibernate, JTDS (with Microsoft SQL Server). I kept getting the following exception:

Error executing DDL via JDBC Statement

org.hibernate.tool.schema.spi.CommandAcceptanceException: Error executing DDL via JDBC Statement
        at org.hibernate.tool.schema.internal.exec.GenerationTargetToDatabase.accept(GenerationTargetToDatabase.java:67)
        at org.hibernate.tool.schema.internal.AbstractSchemaMigrator.applySqlString(AbstractSchemaMigrator.java:524)
        at org.hibernate.tool.schema.internal.AbstractSchemaMigrator.applySqlStrings(AbstractSchemaMigrator.java:470)
        at org.hibernate.tool.schema.internal.AbstractSchemaMigrator.createTable(AbstractSchemaMigrator.java:273)
        at org.hibernate.tool.schema.internal.GroupedSchemaMigratorImpl.performTablesMigration(GroupedSchemaMigratorImpl.java:71)
        at org.hibernate.tool.schema.internal.AbstractSchemaMigrator.performMigration(AbstractSchemaMigrator.java:203)
        at org.hibernate.tool.schema.internal.AbstractSchemaMigrator.doMigration(AbstractSchemaMigrator.java:110)
        at org.hibernate.tool.schema.spi.SchemaManagementToolCoordinator.performDatabaseAction(SchemaManagementToolCoordinator.java:176)
        at org.hibernate.tool.schema.spi.SchemaManagementToolCoordinator.process(SchemaManagementToolCoordinator.java:65)
        at org.hibernate.internal.SessionFactoryImpl.(SessionFactoryImpl.java:478)
        at org.hibernate.boot.internal.SessionFactoryBuilderImpl.build(SessionFactoryBuilderImpl.java:422)
        at org.hibernate.cfg.Configuration.buildSessionFactory(Configuration.java:711)
        at org.grails.orm.hibernate.cfg.HibernateMappingContextConfiguration.buildSessionFactory(HibernateMappingContextConfiguration.java:274)
        at org.grails.orm.hibernate.connections.HibernateConnectionSourceFactory.create(HibernateConnectionSourceFactory.java:86)
        at org.grails.orm.hibernate.connections.AbstractHibernateConnectionSourceFactory.create(AbstractHibernateConnectionSourceFactory.java:39)
        at org.grails.orm.hibernate.connections.AbstractHibernateConnectionSourceFactory.create(AbstractHibernateConnectionSourceFactory.java:23)
        at org.grails.datastore.mapping.core.connections.AbstractConnectionSourceFactory.create(AbstractConnectionSourceFactory.java:64)
        at org.grails.datastore.mapping.core.connections.AbstractConnectionSourceFactory.create(AbstractConnectionSourceFactory.java:52)
        at org.grails.datastore.mapping.core.connections.ConnectionSourcesInitializer.create(ConnectionSourcesInitializer.groovy:24)
        at org.grails.orm.hibernate.HibernateDatastore.(HibernateDatastore.java:196)
        at sun.reflect.NativeConstructorAccessorImpl.newInstance0(Native Method)
        at sun.reflect.NativeConstructorAccessorImpl.newInstance(NativeConstructorAccessorImpl.java:62)
        at sun.reflect.DelegatingConstructorAccessorImpl.newInstance(DelegatingConstructorAccessorImpl.java:45)
        at java.lang.reflect.Constructor.newInstance(Constructor.java:423)
        at org.springsource.loaded.ri.ReflectiveInterceptor.jlrConstructorNewInstance(ReflectiveInterceptor.java:1076)
        at org.springframework.beans.BeanUtils.instantiateClass(BeanUtils.java:142)
(...)

Adding the default_catalog: (name of the database here) and default_schema: (name of the schema, usually dbo) underneath the hibernate: section in application.yml solved the issue.