This Again is a simple post which explains about the below Error
Local availability replica for availability group 'XXX-DAG' has not been granted permission to create databases, but has a SEEDING_MODE of AUTOMATIC.
How to avoid this error all together? When we have the above error we just need to run the below command
--Allow the Availability Group to create databases on behalf of the primary replica
ALTER AVAILABILITY GROUP [XXXX] GRANT CREATE ANY DATABASE
Also Make sure there are no databases when creating Distributed availability Group. My approach would be to restore on all replicas with no recovery and then bring online on primary replica of primary Availability group and then perform join so that the database would be part of DAG automatically.