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Hey Holla,
You need to either use a hosted database, or a local database - if you are setting it up to connect to a local database then you need to configure a private VSTS Agent locally - more info.
Make sure to configure the Build to use that Agent - and that the Agent has appropriate permissions to the Server/DB.
Hope that helps!
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Iam very new to redgate tools,my purpose of using dlm automation I need to build ci cd using my vsts account ,I had tried downloading the plug-in from the market place and configured the steps following your documentation,but seems like I have done something wrong and I could see the error like "error in connecting database,etc can you please assist me in webex?