Can't restore database with (apparently) same version
The two managed types of SQL Server in Azure (SQL Database and Managed Instance) are version 12.0.2000.8. Don't be fooled by the low version number, it is always higher than on-prem meaning you can never restore an &quot;Azure SQL&quot; backup to on-prem.
You cannot perform a backup from SQL Database, but you can do a copy only backup from Managed Instance. This would be my guess.
Perhaps the error message is incorrect, and should have said that backup is from 12.00.2000
If it is the 3:rd type of &quot;SQL Server in Azure&quot;, a VM with SQL Server installed, then it is of any version you like. This should be restoreable.
So, find out what type of SQL you have in Azure, then take it from there.