Unable to create stored procedure through Azure pipeline

I am trying to create a stored procedure through Azure pipeline, however I did not succeed.

Here is my script:

IF NOT EXISTS (SELECT ROUTINE_NAME 
               FROM INFORMATION_SCHEMA.ROUTINES 
               WHERE ROUTINE_NAME = 'sp_checknpapermission' 
                 AND ROUTINE_TYPE = 'PROCEDURE')
BEGIN
    SET QUOTED_IDENTIFIER ON

    EXEC('
          CREATE PROCEDURE sp_checknpapermission
          AS
          BEGIN
              SET NOCOUNT ON;
              DECLARE @UserName NVARCHAR(128);
              DECLARE user_cursor CURSOR FOR
                SELECT name
                FROM sys.database_principals
                WHERE name LIKE '%@web.onmicrosoft.com' AND type_desc = 'EXTERNAL_USER';

              BEGIN TRY
                OPEN user_cursor;
                FETCH NEXT FROM user_cursor INTO @UserName;

                WHILE @@FETCH_STATUS = 0
                BEGIN
                IF NOT EXISTS (
                   SELECT 1
                   FROM sys.database_role_members AS rm
                   JOIN sys.database_principals AS r ON rm.role_principal_id = r.principal_id
                   JOIN sys.database_principals AS u ON rm.member_principal_id = u.principal_id
                   WHERE u.name = @UserName  AND r.name = 'db_owner'
                )
                BEGIN
                     PRINT 'The user ' + @UserName + ' does not have db_owner role';
                     END
                     ELSE
                     BEGIN
                        PRINT 'The user ' + @UserName + ' already has the db_owner role';
                     END
                     FETCH NEXT FROM user_cursor INTO @UserName;
                END

               CLOSE user_cursor;
               DEALLOCATE user_cursor;
             END TRY
             BEGIN CATCH
                 ROLLBACK;
                 PRINT ERROR_MESSAGE();
            END CATCH;
    END
  ')
END

This is the error I get:

Msg 102, Level 15, State 1, Server sqlserver-rba-dev, Line 17
Incorrect syntax near '%'.

Any idea what is wrong here?

The error is telling you the problem, you do have syntax errors in your code; many syntax errors.

In truth, there's no need for the syntax you are using (checking the proc exists and then executing the CREATE in a deferred batch). All supported versions so SQL Server permit the CREATE OR ALTER syntax, and you are using Azure SQL Database, which is based on the latest version of the data engine (and sometimes the next one).

So just use CREATE OR ALTER (and get rid of the sp_ prefix):

CREATE OR ALTER PROCEDURE dbo.checknpapermission
AS BEGIN
    SET NOCOUNT ON;
    DECLARE @UserName nvarchar(128);
    DECLARE user_cursor CURSOR FOR
        SELECT name
        FROM sys.database_principals
        WHERE name LIKE '%@web.onmicrosoft.com'
          AND type_desc = 'EXTERNAL_USER';

    BEGIN TRY
        OPEN user_cursor;
        FETCH NEXT FROM user_cursor
        INTO @UserName;

        WHILE @@FETCH_STATUS = 0 BEGIN
            IF NOT EXISTS (SELECT 1
                           FROM sys.database_role_members rm
                                JOIN sys.database_principals r ON rm.role_principal_id = r.principal_id
                                JOIN sys.database_principals u ON rm.member_principal_id = u.principal_id
                           WHERE u.name = @UserName
                             AND r.name = 'db_owner') BEGIN
                PRINT 'The user ' + @UserName + ' does not have db_owner role';
            END;
            ELSE BEGIN
                PRINT 'The user ' + @UserName + ' already has the db_owner role';
            END;
            FETCH NEXT FROM user_cursor
            INTO @UserName;
        END;

        CLOSE user_cursor;
        DEALLOCATE user_cursor;
    END TRY
    BEGIN CATCH
        ROLLBACK; --Why is this here...?
        PRINT ERROR_MESSAGE();
    END CATCH;
END;

Better yet, as well, bin that CURSOR; it'll be awfully slow. We can also get rid of the TRY...CATCH and ROLLBACK (what are you attempt to roll back here?), and PRINTing errors is an anti-pattern You can easily achieve the same results with some simple string aggregation.

CREATE OR ALTER PROCEDURE dbo.checknpapermission
AS BEGIN
    SET NOCOUNT ON;

    DECLARE @PrintStatement varchar(8000),
            @LF char(1) = CHAR(10)

    SELECT @PrintStatement = STRING_AGG('The user ' + u.name + ' ' + CASE WHEN r.principal_id IS NULL THEN 'does not have the db_owner role'
                                                                          ELSE 'already has the db_owner role' END, @LF)
    FROM sys.database_principals u
         LEFT JOIN sys.database_role_members rm
              JOIN sys.database_principals r ON rm.role_principal_id = r.principal_id
                                             AND r.name = 'db_owner'
                                             ON u.principal_id = rm.member_principal_id
    WHERE u.name LIKE '%@web.onmicrosoft.com'
      AND u.type_desc = 'EXTERNAL_USER';

    PRINT @PrintStatement;

END;