Dynamics 365 CE entity can be enabled or disabled for the Unified client. If entity is enabled for Unified client we can also make it read only if required. These setting is are available under Outlook and Mobile.
When I checked in warehouse I found this option is enabled by default.
After removing this option, I was able to create warehouse record without any issue.
If you are getting this error make sure to check if your entity is not setup as read only in UCI, if yes remove this option save and publish your changes. You should be able to create record without any issue now.
Hope it will help someone!
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